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Insurance Act 2079

Insurance Act 2079: Policyholder Rights, Duties & Legal Remedies

⚖️ Comprehensive Legislation
⏱️ 5 Min Read
📋 Statutory Regulatory Guide

The Insurance Act 2079 (बीमा ऐन २०७९) is the comprehensive legislation passed by the Parliament of Nepal that replaced the outdated Insurance Act 2049, fundamentally restructuring policyholder protections, corporate governance, and regulatory penalties.

1. Landmark Reforms Introduced in Act 2079

Section / Provision	Key Legislative Requirement	Impact on Policyholders
Paid-Up Value Rights	Mandatory conversion to proportionate paid-up cover after 3 consecutive years of payment.	Prevents total loss of paid premiums if policy lapses.
Claim Settlement Deadlines	Strict statutory timeline for claim settlement upon submission of death/maturity proofs.	Faster claim disbursement and interest on delays.
Anti-Fraud & Mis-Selling	Criminal penalties and severe fines for fraudulent insurance claims and agent misrepresentation.	Protects life fund integrity and honest policyholders.

2. Consumer Rights Guaranteed Under Act 2079

Right to receive complete, unredacted policy schedules in Nepali or English.
Right to appoint, change, or update nominee and primary beneficiaries at any time free of charge.
Right to obtain policy loans up to 90% of surrender value at regulated interest rates.
Direct right to file petitions before the NIA tribunal if an insurer unjustly denies a legitimate claim.

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