How to Claim Life Insurance in Nepal — Complete Step-by-Step Guide
When someone in your family dies, the last thing you want to think about is paperwork. But life insurance exists precisely for this moment — and knowing the process in advance can mean the difference between receiving the claim quickly or having it delayed or rejected.
This guide covers the complete claim process for all 14 NIA-licensed life insurance companies in Nepal, including Rastriya Jeevan Beema, Nepal Life, National Life, LIC Nepal, MetLife Alico, Asian Life, SuryaJyoti Life, Himalayan Life, IME Life, Sun Nepal Life, Sanima Reliance Life, Reliable Nepal Life, Citizen Life, and Prabhu Mahalaxmi Life.
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Two Types of Life Insurance Claims in Nepal
Death Claim (मृत्यु दाबी)
Filed by the nominee after the insured person dies. This is the primary purpose of life insurance and requires the most documentation. Time-sensitive — notify the company within 30 days.
Maturity Claim (परिपक्वता दाबी)
Filed by the policyholder themselves when the policy term ends and they are alive. Much simpler process — the insurance company usually contacts you proactively near the maturity date.
This guide covers both, with primary focus on death claims.
Death Claim — Complete Step-by-Step Process
Step 1 — Notify the Insurance Company (Do This First, Within 30 Days)
Contact the insurance company as soon as possible after the death — ideally within 30 days. Most of Nepal’s 14 life insurers require notification within this window under their policy terms.
You do NOT need all documents ready at this point. Just notify them and get the claim form.
How to notify:
- Visit the nearest branch of the insurance company in person (recommended — get everything in writing)
- Call the company’s customer service number
- Email the claims department if the company has an email claims channel
What to tell them:
- Full name of the insured person
- Policy number (found on the policy document or passbook)
- Date of death
- Cause of death (natural illness, accident, etc.)
- Your name and relationship to the insured
- Your contact phone number
Get a written acknowledgement with date and reference number when you visit the branch. Keep this document safely.
Step 2 — Gather All Required Documents
This is the most time-consuming step. Start collecting documents immediately — some take time to obtain from government offices.
Mandatory for ALL death claims (any of the 14 companies):
✓ Death certificate (मृत्यु दर्ता प्रमाणपत्र) — from the local ward office (वडा कार्यालय). This is the single most critical document.
✓ Original life insurance policy document
✓ Latest premium payment receipt (and ideally all receipts for the last 3–5 years)
✓ Nominee’s citizenship certificate (नागरिकता प्रमाणपत्र) — must match the name on the policy exactly
✓ Two recent passport-size photographs of the nominee
✓ Bank account details of the nominee (account number, bank name, branch)
✓ Completed death claim form (get this from the insurance company)
Additional documents for specific death types:
If death was in a hospital:
✓ Hospital death certificate or discharge summary
✓ Attending doctor’s certificate stating cause of death
✓ Hospital medical records (the company may request these)
If death was accidental (road accident, workplace accident, fall, etc.):
✓ Police First Information Report (FIR) — file this at the local police station as soon as possible after any accident
✓ Post-mortem report (शव परीक्षण प्रतिवेदन) — required for all accidental deaths
✓ If road accident: vehicle registration of involved vehicle, driver’s license details if available
If death occurred outside Nepal (foreign employment):
✓ Death certificate authenticated by the Nepali embassy or consulate in that country
✓ If possible: translation of the death certificate into Nepali or English
✓ Foreign Employment Agreement (if the deceased was under a foreign employment contract)
✓ Airport arrival/departure records may be requested
If the nominee is a minor (under 18):
✓ Guardian’s citizenship certificate
✓ The minor’s birth certificate
✓ Court-appointed guardian letter (if the guardian is not a parent)
For policies from merged companies (Himalayan Life, SuryaJyoti, Sanima Reliance, Prabhu Mahalaxmi):
✓ Same documents as above — the merged company honours all pre-merger policies
✓ If the policy was issued under the old company name (e.g. Sanima Life, Prime Life), bring the original policy document — it remains valid
Step 3 — Submit the Claim Form and Documents
Fill out the death claim form completely and accurately. Incomplete forms are one of the leading causes of claim delays. Do not leave any field blank — write “Not applicable” where a question does not apply.
Common mistakes to avoid:
- Nominee’s name spelled differently from their citizenship certificate
- Incorrect or missing bank account number
- Missing signature or date
- Submitting photocopies when originals are required (always bring originals and ask to have photocopies certified)
Submit everything at the insurance company’s branch office. Get a written receipt listing every document you submitted. This receipt is your protection if the company later claims documents are missing.
Step 4 — The Investigation and Review Period
After submission, the company reviews the claim. Standard timelines vary by company and claim type:
| Claim Type | Standard Timeline |
|---|---|
| Natural death, policy held 2+ years | 30–45 days |
| Accidental death | 45–60 days |
| Early claim (policy less than 2 years old) | 60–90 days |
| Claims involving merged company transitions | Add 2–4 weeks |
During this period the company may contact you for additional documents or clarification. Respond as promptly as possible — delays in your response extend the timeline.
NIA regulations require companies to process and either settle or reject claims within a reasonable timeframe. If the company exceeds 90 days without communication, you have grounds to file a complaint with Nepal Beema Pradhikaran.
Step 5 — Claim Settlement and Payment
Once approved, the company pays the claim directly to the nominee’s bank account. The payout includes:
- The base sum assured
- All accrued bonuses (for endowment, whole life, and money back plans)
- Rider benefits if applicable — for example, if an accidental death benefit rider was attached, the nominee may receive double the sum assured
Payments are typically made by bank transfer. Some companies issue a cheque for very large amounts — confirm the payment method with the company when submitting your claim.
Maturity Claim — Simpler Process
If you are the policyholder and your policy has reached maturity (end of term), the process is straightforward:
Step 1: The company will typically contact you 30–60 days before the maturity date. If they do not, contact them yourself.
Step 2: Collect the following:
- Original policy document
- Your citizenship certificate
- Your bank account details
- Completed maturity claim form (provided by the company)
Step 3: Submit at the branch. Maturity claims are processed within 15–30 days in most cases and are very rarely rejected.
Most Common Reasons Claims Get Rejected in Nepal
Understanding these in advance helps you avoid them — or correct them on existing policies.
- Non-disclosure of medical history
The most common reason for claim rejection. If the insured had a pre-existing condition — diabetes, hypertension, heart disease, previous surgery — and it was not declared on the original proposal form, the company can void the policy and reject the claim on grounds of material non-disclosure. Always declare all medical conditions fully and honestly when applying for insurance, regardless of which company. - Policy lapsed due to missed premiums
If the policy lapsed before the death because premiums were not paid within the grace period, the claim is typically not payable. Check your policy status annually and set calendar reminders for premium due dates. - Suicide exclusion clause
Most Nepal life insurance policies exclude suicide within the first 1–2 years of the policy. After this period, most policies do cover suicide. Check your policy document for the specific exclusion period. - Death during the waiting period
Some policies have a waiting period for specific conditions — for example, cancer diagnosis within 90 days of the policy start. Read your policy document carefully. - Incorrect or mismatched nominee details
If the nominee’s name on the policy differs — even slightly — from their citizenship certificate, it can cause delays and in some cases rejection. Check nominee details when the policy is first issued. - Missing FIR for accidental death
For accidental death claims, a police FIR is mandatory at all 14 Nepal life insurers. If no FIR was filed at the time of the accident, it is very difficult to obtain one later. - Death outside Nepal without proper documentation
If someone dies while working abroad and the death is not properly documented through the Nepali embassy, the claim can face serious difficulties. Always ensure foreign employment is formally documented.
What to Do If Your Claim Is Rejected
Do not accept a rejection without following these steps:
Step 1 — Request a written rejection letter
Under NIA regulations, the insurance company must provide a written rejection letter stating the specific reason for rejection. If they refuse to provide this, escalate immediately.
Step 2 — Review the rejection reason carefully
Sometimes rejections are for administrative reasons (missing document, wrong form) that can be corrected and resubmitted. Ask the company directly whether the claim can be resubmitted with additional documentation.
Step 3 — File a complaint with Nepal Beema Pradhikaran (NIA)
NIA has a formal consumer grievance mechanism. You can file at:
- NIA Head Office, Kathmandu
- Website: nia.gov.np
- NIA has the authority to direct insurance companies to settle legitimate claims
Step 4 — Seek legal advice for large wrongful rejections
Nepal’s Insurance Act 2079 gives policyholders enforceable legal rights. For claims above NPR 5 lakh that have been wrongfully rejected, consulting a lawyer with insurance experience is worthwhile.
The Documents Your Family Needs to Know About — Do This Today
Before any claim becomes necessary, take these actions:
Tell your nominee that the policy exists. Many families discover a policy exists only when going through a deceased family member’s belongings — often too late or after significant delay.
Write down this information and keep it somewhere accessible:
- Insurance company name and branch
- Policy number
- Customer service phone number
- Policy document location
- Premium due dates
Check nominee name matches citizenship certificate. Do this now on every policy you hold with any of the 14 companies.
Set up premium payment reminders. A lapsed policy at the time of claim is the second most heartbreaking situation after a wrongful rejection.
Frequently Asked Questions
How long does a death claim take in Nepal?
For standard natural death claims where the policy has been in force for more than 2 years, most of Nepal’s 14 life insurers process claims within 30–45 days. Accidental death claims take 45–60 days. Early claims (policy under 2 years) can take up to 90 days.
Can a claim be filed without the original policy document?
If the original policy document is lost, you can request a duplicate from the insurance company before filing the claim. Bring the premium payment receipts and the insured person’s citizenship certificate to support the duplicate request.
What if the insured died abroad?
All 14 Nepal life insurers cover death outside Nepal for standard policies. You need an authenticated death certificate from the Nepali embassy in the country where the death occurred, plus the standard claim documents. Contact the insurance company’s head office claims department directly in these cases.
Can I claim if I missed some premium payments?
If the policy lapsed (premiums unpaid beyond the grace period) at the time of death, the claim may not be payable. However, if premiums were paid up to the point of death and only the most recent payment was late, contact the company — they may have flexibility during the grace period investigation.
What if the insurance company delays the claim indefinitely?
File a formal complaint with Nepal Beema Pradhikaran (NIA). NIA has regulatory authority over all 14 life insurance companies and can mandate timely settlement of legitimate claims.
This guide covers the general claims process. Specific procedures may vary by company and individual policy terms. Always verify current requirements directly with your insurer.
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