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Foreign Employment Insurance Amount Increased to Rs 1 Million

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April 14: Insurance Board has increased the insurance amount of foreign employment insurance by 100 percent to Rs 1 million. The board on Tuesday issued a directive effective from April 13, 2016. Along with the implementation of the directive, the rightful nominee of the insured who loss life during foreign employment will get compensation of Rs 1 million. Earlier, it was Rs 500,000. Though the insurance amount has increased by 100 percent, insurance premium on foreign employment has increased by 65 percent only. The board took the decision as per the recommendation made by Foreign Employment Promotion Board. In the directive, insurance premium has been set differently as per the insurance period and age of the insured.

According to new arrangement, insurers need to issue insurance policy for six months more to the worker bound for foreign employment than the contract period between the worker and the employer. As per the directive, the period should not exceed one year. The directive also clarifies that the insured worker will not have to pay any commission to the agent. 

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