MOU For ICFC Finance

Bancassurance Agreement
Between
ICFC Finance Ltd.
And
Siddhartha Insurance Ltd.
This Agreement is made on ….…by and between:
ICFC Finance Ltd., an ‘C’ category financial institution having registered office address at
Naxal, Kathmandu Nepal and authorized to carry out financial service activities in Nepal by
Nepal Rastra Bank (hereinafter referred to as “Finance”), duly represented by its
…………………………
AND
Siddhartha Insurance Ltd., a public limited company incorporated and obtained license under
the laws of Nepal having registered office at Siddhartha Insurance Bhawan, Babarmahal,
Hanumansthan, Kathmandu, (hereinafter referred to as “Company”), duly represented by its
Chief Executive Officer (CEO).
The various terms and conditions of this agreement are stipulated as under:
1. Objective of Agreement
1.1. The main objective of the agreement is to support each other’s business and join hands
for mutual benefits, the primary focus of both organizations being integrated customer
service.
2. Date and Period

2.1. The agreement shall be effective from the date of signing.
2.2. The validity of the agreement shall be one year from the date of signing. It shall be
renewed automatically every year unless otherwise modified or terminated by either
party.
3. Roles and Responsibilities of ICFC Finance Ltd.
3.1. Finance shall forward requests along with necessary documents to SIL via e-mail or any
possible means of communication about the proposal for insurance, unless the proposal
is rejected immediately with proper justification by SIL. Finance ill remit collected
premiums to SIL.
3.2. Finance shall allow a space within its premises for placement of SIL staffs in case if
Finance felt needed, to provide insurances services to Finance customers directly from
finance. SIL shall accordingly arrange for necessary logistics.
3.3. Finance shall not incur any liability or responsibility as a result of non-payment of any
premiums by an applicant or customer.
3.4. Finance may at its own option forward to SIL all inquiries or correspondence that it
may receive from any source which Finance believes is more appropriately intended for
SIL. Information received by Finance in this regard shall be considered to be received
by SIL.
4. Roles and Responsibilities of Siddhartha Insurance Ltd. (SIL)
SIL shall assign one designated Relationship Manager to look after Finance business who will
facilitate for prompt service to Finance and its customers in overall aspect like timely issuance
of policy, claim handling, policy cancellation, pending commission and TDS etc Said staff will
be in regular contact with Banc assurance unit of Finance and will have meeting with Head-
Banc Assurance of Finance on at least quarterly basis as a service review meeting to identify the
shortcomings and for its speedy solution.
4.1. SIL shall further appoint/assign one full time dedicated manpower to look after Finance
Business who will station either at Finance (if approved by Finance or at own office of
SIL. His/her job will be as follows:
 To co-ordinate with Finance Bancassurance unit/branches on day to day
basis.
 Facilitating for timely issuance of the new/renewed policy and delivering
it to Finance branches.
 Processing new request received from Finance for issuing Insurance
policy upon checking necessary documents and proper site inspection
verification.
 Providing other insurance services like facilitating for speedy settlement
of Finance customers claim, providing commission, and TDS certificates
on timely manner upon request from Finance etc.
4.2. Upon receipt of Insurance request from Finance, SIL shall visit the proposed site for
inspection and accordingly advise Finance and its customers for correction/amendment
in case of any mismatch in request forwarded from finance. It is to be understood by
Finance that the Debit Note provided to finance is after necessary site
inspection/verification and also after fulfillment of all required information/
documentation. Maximum turnaround time for processing a new insurance request of
finance will be 24 hour.
4.3. SIL shall provide at its own expense, trainings/seminar program to employees of
Finance and its customers at times and locations mutually agreed upon between parties
on sales techniques in relation to insurance products and other relevant aspects related to
insurance risk and its mitigation.
4.4. SIL shall clearly in advance inform Finance and its customers regarding document that
are required to be submitted for lodging a claim under different types of policies. Once
Finance or its customer files a claim, SIL shall give priority and settle the claim
expeditiously and without any demure. SIL on weekly basis shall send a report of
pending claim cases of Finance customers to Finance along with their latest status.
4.5. SIL shall provide renewal notice/list of expiring policies of entire Finance customers on
monthly basis at least one month before expiry to Finance which will be in addition to
SIL’s informing Finance’s customers. Finance shall accordingly credit the premium in
the account authorized by SIL before expiry of the policy. SIL shall remind Finance for
any premium if not credited in their account within expiry date.
4.6. SIL shall accept e-mail request sent from Finance and shall coordinate with Finance for
issuing the policies/doing the business centrally from single branch /unit.
4.7. Both parties will take initiation in designing/developing software compatible to Banc
assurance business by providing their expertise if required.
4.8. Finance’s commission shall be paid on the 7th Day of each Nepali month for the
amounts due in the bygone month. SIL shall provide TDS certificate to Finance on
quarterly basis within a month of beginning of new quarter.
5. Amendment
Unless otherwise provided under this agreement, no amendment can be made without
both parties written consent.
6. Non-Exclusivity
Both the parties agree that this Agreement shall be on a non-exclusive basis only. This
Agreement shall not restrict both the parties to enter into similar type of Agreement
with other entities.
7. Service Charge
For the services provided by Finance under this agreement, SIL will pay commission
to Finance. This commission shall be within the limit of commission of insurance
Regulations in relation to each Insurance product marketed by Finance in accordance
with the terms of this Agreement or as may be amended from time to time.
For & on behalf of On behalf of
ICFC Finance Ltd. Siddhartha Insurance Ltd.
………………………………
Name: ………………………………
Title: Name: Mr. Birendra Baidawar Chhetri
Title: Chief Executive Officer
Witness: Witness:
……………………..
Name: ……………………..
Title: Name: Mr. Kamal Chandra Dawadi
Title: Head-Bancassurance

MOU For ICFC Finance

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Bancassurance Agreement

2. Date and Period

3. Roles and Responsibilities of ICFC Finance Ltd.

4. Roles and Responsibilities of Siddhartha Insurance Ltd. (SIL)

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