Agreement between Ajod Insurance and NPI for online payment

10th Jan, 2022 | Tourism Mail Crew

KATHMANDU, Jan 10: An agreement was reached between Ajod Insurance Limited and Nepal Clearing House Ltd. (NCHL) on Friday.

Ajod Insurance has entered into an agreement with the two organizations to enable its payment transactions to be paid digitally using Nepal Clearing House payment systems.

The agreement was signed by Kumar Bahadur Khatri, Chief Executive Officer of Ajod Insurance and Nilesh Man Singh Pradhan, Chief Executive Officer (CEO) of NCHL.

Following the agreement, Ajod Insurance has become a non-life insurance company connected to the National Payment Interface under NCHL's National Payment Switch. It will also be able to link the company's internal payment system directly to the NCHL-IPS system from its bank accounts linked to its investment related transactions including insurance claim payment, credit note payment, agent commission, survey payment, salary, vendor payment.

It will also help Ajod Insurance to easily transfer payment transactions from its various accounts to its operating account. All these transactions will take place directly from the insurance companies and the bank accounts of the beneficiaries.

After joining National Payments Interface (NPI), all the payments of Ajod Insurance will be fully automatic. Arhant Solutions Pvt. Ltd., a technical partner of Ajod Insurance, has also played a key role in the integration with NPI, which has been providing core systems to more than 18 non-life insurance companies, including Ajod Insurance.

Insurers from more than 30 life and non-life insurance companies, including Ajod Insurance, have been paying their insurance premiums online through Connect IPS. Also, 10 life and non-life insurance companies are already affiliated with NPI.

Developed as an integrated interface of NCHL's various payment systems, NPI currently has 60 member banks and financial institutions affiliated to it. Similarly, 71 non-banking institutions including PSP-PSO, remittance companies, merchant banks, government and semi-government institutions are affiliated as indirect-technical members.

Ajod Insurance has been expanding its services since 2018. The organization is positive that this partnership will help expand its presence in insurance products offered through various digital channels.