Short answer
Workers going abroad on a labour permit buy a foreign employment term life policy that pays Rs 10 lakh to the family if the worker dies from any cause, in Nepal or abroad, plus Rs 1 lakh for funeral costs and Rs 2 lakh for lost income. A death abroad adds Rs 1 lakh towards bringing the body home. Permanent total disability pays Rs 10 lakh. A critical illness add-on, which is compulsory, pays Rs 5 lakh if one of 15 listed illnesses is diagnosed, and medical costs for those illnesses or accident injuries are covered up to Rs 1 lakh. For a two-year contract, a worker aged 18 to 35 pays Rs 2,646 plus Rs 400 for the illness add-on. The rules are set by the Nepal Insurance Authority's directive.
The details
What it pays
| Event | Amount |
|---|---|
| Death from any cause, in Nepal or abroad | Rs 10 lakh |
| Funeral costs after a death | Rs 1 lakh |
| Loss of income after a death | Rs 2 lakh |
| Bringing the body home after a death abroad | Rs 1 lakh |
| Permanent total disability | Rs 10 lakh |
| Partial disability | Rs 40,000 to Rs 5 lakh, by the schedule |
| One of 15 listed critical illnesses | Rs 5 lakh |
| Medical costs for those illnesses or accident injuries | Up to Rs 1 lakh |
The 15 critical illnesses are cancer, kidney failure, primary pulmonary arterial hypertension, multiple sclerosis, major organ transplant, coronary artery bypass, aorta graft surgery, heart valve surgery, stroke, a first heart attack, coma, total blindness, paralysis, benign brain tumour and major head trauma from an accident.
Premium for Rs 10 lakh cover
| Term | Age 18 to 35 | Over 35 to 50 | Over 50 to 64 |
|---|---|---|---|
| 1 year | Rs 1,486 | Rs 2,175 | Rs 5,076 |
| 2 years | Rs 2,646 | Rs 3,625 | Rs 7,250 |
| 3 years | Rs 3,524 | Rs 4,930 | Rs 9,570 |
| 4 years | Rs 4,423 | Rs 6,090 | Rs 12,035 |
| 5 years | Rs 5,148 | Rs 7,105 | Rs 14,500 |
| 6 years | Rs 5,728 | Rs 8,411 | Rs 16,820 |
The critical illness add-on costs Rs 400 for every term and age. Insurers can't give discounts or agent commission on this policy. Half-year terms in between are priced in the directive.
To buy it
The insurer needs the proposal form with your health questions answered, a copy of your passport, your medical report and your visa. It's issued only once your labour permit is valid, and never for a country Nepal has banned for foreign employment.
Common problems
How long does the policy last?
It's issued for six months longer than your labour contract, and the premium for the whole period is paid at once. Neither the term nor the cover can be changed once it's issued.
I bought the policy but didn't go abroad.
You can ask the insurer to cancel it if you haven't left within six months of the policy date, or at any time on request. The insurer keeps Rs 500 and refunds the rest of the premium in proportion. Bring the policy, a copy of your passport, an application with the reason and a certified copy of the cancelled labour permit.
What isn't covered?
Death or injury while flying on anything other than a licensed aircraft is excluded. So is taking part in war, serving in the armed forces or going to a country the Government of Nepal has banned for foreign employment.
When does the illness cover start?
There's a 30-day waiting period from the policy date. An illness diagnosed in that time isn't covered. You also have to survive 30 days after the diagnosis for the illness payment, though the main death cover still applies.
How does my family claim?
They apply to the insurer with the claim form, the death registration certificate, a relationship certificate from the local level, the worker's citizenship or passport and the claimant's citizenship. For a death abroad, add the foreign death certificate, the Nepali embassy's death letter, the airline's air waybill for the body and the customs clearance paper. The insurer must list every document at once and can't keep asking for more.
Where is the money paid?
Into the worker's bank account, or after a death into the account of the nominee named in the policy or the legal heir.
I lost the policy document.
Ask the insurer for a copy. It costs Rs 50.
Sources
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