National Identity Card Requirement for Life Insurance: Nepal Insurance Authority Enforces Strict Implementation
17th September 2026, Kathmandu
Nepal Insurance Authority is set to strictly enforce the requirement of National Identity Cards (NID) for life insurance policies, urging insurers to fully implement the provision following regulatory pressures and anti-money laundering mandates.
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Life Insurance NID Requirement
Regulatory Mandate and Background
- Original Circular Date: Issued on Ashadh 14, 2081, directing insurers to incorporate National Identity Card details for all insurance transactions starting from Magh 1, 2081.
- Implementation Status: Insurers previously implemented the rule only partially due to operational challenges and customer accessibility issues.
- Rationale for Enforcement: The regulator emphasizes that National ID integration is essential for proper customer identification (KYC) and compliance with Prevention of Money Laundering (AML) regulations.
Concerns Raised by Insurers
- Market Difference: Insurers argue that unlike banking customers who visit branches voluntarily, insurance agents must actively visit households to sell life insurance products.
- Scope Expansion Risk: Insurers suggest that strict documentation during initial policy purchase could deter prospective buyers, recommending instead that National ID collection be mandated prior to claim settlements, maturity payouts, or survival benefits.
Impact on Foreign Employment and Non-Resident Nepalese
- Access Barriers: Nepalese citizens working abroad who do not yet hold a National Identity Card face difficulties purchasing life insurance policies.
- Financial Restrictions: The lack of a National ID also restricts migrant workers from opening bank accounts, managing savings, remitting funds to personal accounts, and investing in the Nepalese stock market.
For More: Life Insurance NID Requirement
