Premier Insurance Co. (Nepal) Ltd. has signed an agreement with Nepal Clearing House Ltd. (NCHL) to use NCHL payment systems to automate its different payment-related processes, such as disbursements and collections. Mr. Shadew Tiwari, Deputy CEO of Premier Insurance, and Mr. Neelesh Man Singh Pradhan, CEO of NCHL, signed the agreement.
Premier Insurance has become the first non-life insurance company to directly integrate its system(s) with NCHL’s National Payments Interface (NPI), allowing the insurance company to fully automate disbursement transactions such as claim proceeds, credit note payments, agent commissions, salary payments, purchase/vendor payments, and investment placements using NCHL-IPS and connectIPS systems. This will also make it easier for the insurance firm to sweep transactions from various bank accounts into its operational account. All such transactions will be executed straight from the insurance company’s bank accounts to the beneficiary’s/bank/financial customer’s institution account.
Transactions may be entirely automated and reconciliation made easier with this connectivity. Arhant Solution Pvt Ltd., the insurance company’s technical partner, assisted with the integration. Arhant Solution Pvt Ltd. has provided core insurance solutions to more than 18 non-life insurance companies in Nepal.
Premier Insurance, along with 30 other life and non-life insurance firms, is already utilizing NCHL’s connectIPS platform to collect premiums, and seven more life insurance companies have signed up for the NPI system. NPI is a consolidated interface for interconnection with NCHL’s multiple underlying payment systems. The network includes over 60 BFIs and is used by 68 non-bank institutions such as PSPs/PSOs, insurance companies, remittances, merchant banks, government, semi-government institutions, large corporations, and others.