Citizen Life’s Sallibazar Branch Pays NPR 1.3 Million Death Claim
4th November 2025, Kathmandu
Citizen Life Insurance Company Limited has demonstrated the core value of life insurance by promptly settling a death claim under its Foreign Employment Insurance Plan.
Citizen Life Pays Death Claim
The company’s Sallibazar branch in Surkhet successfully disbursed a total of NPR 13 lakh (NPR 1.3 million) to the family of the late Gobinda B.K. from Simta Rural Municipality–5. This payment provides a crucial financial safety net for the family following a sudden and tragic loss.
Details of the Claim Settlement
The payment was made to the deceased’s widow, Sushila B.K., representing the composite benefits provided under the specialized Foreign Employment Insurance Plan.
Total Claim Breakdown
The total amount disbursed was NPR 13 lakh, which was structured to provide comprehensive support for the surviving family:
Insurance Amount: NPR 10 lakh (the primary sum assured).
Funeral Expenses: NPR 1 lakh (to cover immediate, critical expenses).
Income Loss Compensation: NPR 2 lakh (to help mitigate the immediate financial shock of losing the primary earner).
This structured payout ensures that the family receives funds specifically earmarked for various immediate and short-term needs, highlighting the plan’s thoughtful design.
Tragic Circumstances and Prompt Action
The late Gobinda B.K. had recently returned from foreign employment but was tragically compelled to travel to India for work again to support his family. Unfortunately, he passed away in a road accident while working abroad. The company acted with commendable speed, transferring the claim amount to the family shortly after the body was brought back to his village.
Branch Head Molal Sahu emphasized that upon receiving news of the death, the company promptly collected the necessary documents and completed the formalities. This efficiency ensures that the financial relief reaches the family during their most vulnerable time. Sahu noted that if all required documentation is submitted completely and on time, the company is capable of processing and disbursing claim payments within a week.
The Importance of Foreign Employment Insurance
This claim payout underscores the indispensable value of the Foreign Employment Insurance Plan for Nepal’s economy and social welfare.
Financial Safety Net
The Branch Head rightly stressed the importance of life insurance as a financial safety net for families, whether the insured person is alive or not. For families reliant on remittances from migrant workers, the death of the primary earner can be catastrophic. The insurance payout mitigates this risk, ensuring the surviving dependents have a means of financial stability and security.
Mandatory Coverage and Social Responsibility
Nepal’s foreign employment regulations often mandate life insurance and term insurance coverage for workers heading abroad, recognizing the high risks involved in international labor migration. Citizen Life’s quick action in settling this claim reinforces its role in meeting this national and social responsibility. The Foreign Employment Insurance Plan, which covers risks specific to the migrant worker population, is a vital tool for social protection and for securing the well-being of families in rural areas like Simta Rural Municipality. The prompt service sets a positive example for the insurance industry’s commitment to its policyholders when they need it most.
For More: Citizen Life Pays Death Claim
