Insurance coverage in digital wallet is possible now in Nepal. To this date, it was available in insurance and banks only. Now, a wallet named MyPay is offering insurance coverage of NRs. 1 Lakhs to Nepali users.
Previously, wallets were used to facilitate online payments of insurance premiums only. With this, MyPay becomes the first digital wallet in Nepal to provide insurance coverage for accidental risks.
The facility is available for only 5000 KYC verified users. You will need to verify your KYC account get free insurance with MyPay.
Know more about the insurance coverage in MyPay wallet
As per the information provided by MyPay, it is providing this insurance coverage facility to 5000 KYC verified users only. It means that users who are not KYC verified will not get this facility.
It is offering the insurance product of IME General Insurance Company Ltd. through this facility. However, you do not need to pay any insurance premium on this facility. All you need to do is perform a monthly transaction of at least Rs 1000 every month through MyPay.
Let’s know the basic features of this insurance coverage
- Sum Insured: Rs 100,000
- Validity Period: Maximum 1 year
- Beneficiaries: 5000 KYC verified users
- Risks covered: 1. Accidental death 2. Permanent Disability 3. Hospitalization expense due to accident up to Rs 1 Lakh or Actual Expense (Whichever is Lower) 4. Partial Disability as per Beema Samiti Directive
How does this insurance coverage work on MyPay wallet?
All you need to do is download the MyPay app or sign up through www.mypay.com.np. Then you can follow these steps:
- Verify your KYC
- Perform monthlytransactions of at least Rs 1000 from MyPay app (Remember, transactions like wallet load, wallet-to-wallet transfer and bank transfer are not counted)
- After you fulfill these criteria, you’ll get an SMS from MyPay
- Another SMS will be sent before the expiry of insurance policy
The eligible users can communicate to MyPay via SMS to choose the validity period not exceeding one year.
Effectiveness of policy start and end date:
The insurance policy shall be started for an individual from the 2nd day of Transaction started after the customers fulfill all the requirements.
Such policy shall remain valid till the end of the next Nepali month.
The customer needs to perform the transaction having at least Rs. 1,000 in the second month also for the continuation of his policy for the third month and so on.
How to claim the insurance coverage?
You’ll get insurance coverage only if you face any risk mentioned in the insurance coverage criteria.
- In case the insured user faces any of the risk mentioned in the insurance coverage criteria, they need to provide required documents to MyPay within 7 days. The users outside of the valley can provide the documents through email. However, for more validation and authorization, MyPay encourages the users inside the valley to physically present the documents in MyPay’s office.
- MyPay will then verify the claim and forward the claim to the Insurance Company after verification of terms and conditions.
- The insurance company will process the settlement of the claim as requested by MyPay and send to it on behalf of the user
- Then MyPay will hand over the claim amount to the concerned person if all the criteria are met
How is it different from a typical insurance policy?
- You do not need to pay insurance premium. All you need to do is perform transactions of at least 1000 for each month. For example, if you make payments of Rs 1000 in the month of Falgun, you’ll be eligible for the insurance claim starting from two days once you reach Rs 1000 transaction limit.
- You’ll need to verify KYC
- The insurance is valid for one year
MyPay has taken a unique path in this nearly saturated digital wallets industry in Nepal. While banks were providing insurance policies under bancassurance facilities, it becomes the first wallet to introduce an insurance coverage program for the users. As per the information provided by MyPay, this offer is to stay for long.
What did you think of this new feature in MyPay? Will you think it will help this wallet to grow more users? What features can it add further? Dropdown your comments.
Also read: Why did NRB reduce the daily per-person domestic remittance limit?
