Kathmandu. Nepal Insurance Authority has issued the Small Insurance Directive, 2079. The Micro Insurance Directive, 2079 has been issued so that life insurance can be insured up to 50 lakhs and life insurance up to 5 lakhs.

The Nepal Insurance Authority has issued directives covering the policy period, insurance fee, business covered by micro insurance and other provisions. According to the guidelines, short term life insurance includes periodical short life insurance, term short life insurance, term short life insurance and other short life insurance.

Similarly, towards non-life insurance, home, property and business, vehicle, engineering, liability and monetary loss and other minor non-life insurance will be available.

The authority has also specified the term of insurance for micro insurance. In the case of short term life insurance policy, only one year or more insurance policy can be issued. In the case of non-life insurance, the policy can be issued only for a period of one year or less.

The limit of micro insurance has also been specified through the directive. Home, property and business and vehicles can be insured up to Rs 50 lakh. For liability and monetary loss and other micro insurance, a maximum of five lakh rupees can be taken. Similarly, life insurance companies will be allowed to issue only micro insurance with a maximum sum insured of Rs.5 lakh.

Provisions have also been made that micro insurance companies can issue micro insurance in collaboration with organizations associated with supply chain such as telecom, internet service providers, payment service providers, stores, hotels, restaurants etc.