Insurance Postal Stamp Removed from Practice

10th February 2026, Kathmandu

The official removal of the Insurance Postal Stamp Practice in Nepal marks a major regulatory shift aimed at modernizing the country’s financial ecosystem. On February 9, 2026 (Magh 26, 2082), the Nepal Insurance Authority (NIA) issued a formal circular directing all insurance companies, brokers, and intermediaries to immediately cease the requirement of affixing physical postal stamps (revenue stamps) on insurance documents.

Insurance Postal Stamp Removed

This move follows a landmark decision by the Council of Ministers (Cabinet) on Mangsir 29, 2082, which resolved to eliminate the mandatory use of postal stamps for document authentication across public service delivery, except where strictly mandated by specific prevailing laws.

Why the Practice Was Abolished

For decades, Nepal’s insurance sector relied on physical revenue stamps of small denominations (typically NPR 10) to “authenticate” everything from policy issuance to claim settlements. This practice was increasingly seen as a bottleneck in the digital age.

Procedural Delays: Policyholders often had to visit a post office or a local vendor just to find a physical stamp before submitting a claim or renewing a policy.

Administrative Red Tape: Insurance companies had to manually verify and manage these stamps, adding a layer of unnecessary physical paperwork.

Digital Incompatibility: You cannot easily “digitize” a physical stamp. The requirement was a major hurdle for companies trying to implement 100 percent paperless online policy issuance.

Key Impact on Insurance Services

The removal of the stamp requirement is a cornerstone of the Nepal Insurance Authority’s 2026 Digitalization Drive. It changes the workflow for several key services:

1. Faster Claim Settlements

Insurance claims are often time-sensitive. By removing the need for a physical stamp on discharge vouchers and claim forms, the “Physical-to-Digital” gap is closed. This allows for fully electronic claim processing without the need for the claimant to provide a stamped physical copy.

2. Streamlined Policy Issuance

New policies can now be issued and sent via email or mobile apps with full legal validity. Previously, the lack of a physical stamp was sometimes used as a technicality to question the validity of a digital document.

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3. Cost and Convenience for Consumers

While the cost of a stamp (NPR 10) was negligible, the logistical cost (traveling to find a stamp, time spent) was high. This reform removes that friction, particularly for rural policyholders.

Supporting the Shift to Digital Payments

This reform coincides with another major NIA directive that went into effect on Magh 1, 2082 (January 14, 2026), which mandates that all insurance-related payments—including premiums and claim disbursements—must be handled through electronic banking systems.

No More Cash: All transactions over a certain threshold must be digital.

Direct Bank Transfers: Claims are now paid directly into the bank accounts of the insured, making the physical “stamped receipt” obsolete.

What Policyholders Need to Know

While the physical stamp is gone, the legal requirements for document validity have not been lowered.

Digital Signatures: The NIA is encouraging the use of digital signatures and biometric verification to replace the “authenticity” previously provided by the stamp.

Prevailing Laws: If a specific legal process (such as a court-related insurance dispute) still requires a revenue stamp under the Stamp Act, that specific requirement may still apply until the broader law is amended.

Check with Your Insurer: Most major insurers like Nepal Life and Sagarmatha Lumbini have already updated their mobile apps and portals to reflect this change.

Conclusion

The Insurance Postal Stamp Practice Removal is more than just a procedural update; it is a symbolic end to the “Paper and Stamp” era of Nepalese bureaucracy. By aligning with the Cabinet’s broader vision for a “Digital Nepal,” the Insurance Authority has removed one of the last physical barriers to a fully automated insurance market. This reform is expected to improve Nepal’s Ease of Doing Business ranking and significantly increase insurance penetration by making the process more accessible to the tech-savvy younger generation.

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