Premier Insurance becomes the first non-life insurance to join NPI

Published On: December 22, 2021 05:03 PM NPT By: Republica

KATHMANDU, Dec 22: Premier Insurance Co (Nepal) Ltd has signed an agreement with Nepal Clearing House Ltd. (NCHL) for automating its various payments-related processes, including disbursements and collections, through NCHL payment systems.

The agreement was signed by Shadew Tiwari, Deputy CEO of Premier Insurance, and Neelesh Man Singh Pradhan, CEO of NCHL. With this, Premier Insurance has become the first non-life insurance company to directly integrate its system with the National Payments Interface (NPI) of NCHL, enabling the insurance company to process the disbursement transaction, like claim proceeds, credit note payment, agent commission, survey payment, salary payment, purchase/vendor payments, and investment placements fully automated through NCHL-IPS and connectIPS systems.

This will also help the insurance company to sweep their transactions from multiple accounts held at different banks to its operating account. All such transactions will be processed directly through the bank accounts of the insurance company to the beneficiary/ customer account held at any bank/financial institution.

With this integration, the transactions can be fully automated and reconciliation eased. The integration has been supported by the insurance company’s technical partner Arhant Solution Pvt Ltd, which has been providing core insurance solutions to more than 18 non-life insurance companies in Nepal.

Premier Insurance along with other 30 life and non-life insurance companies are already using NCHL’s connect IPS platform for their premium collection and seven other life insurance companies have already subscribed to the NPI system. NPI is a consolidated interface for interconnection with multiple underlying payment systems of NCHL and has over 60 BFIs within the network and is being used by 68 non-bank institutions including PSPs/PSOs, insurance companies, remittances, merchant banks, government, semi-govt institutions, large corporates, etc.