The National Insurance Corporation (NIC) has announced significant amendments to its legislation.
The recently enacted National Insurance Corporation (Amendment) Act No. 21 of 2024 allow for a beneficiary to instruct the NIC:
I. To pay a short-term benefit directly to his/her employer.
II. To pay a long-term benefit to a financial institution, an elderly home or an organization approved by the Board.
III. To pay a funeral grant directly to any funeral home provided that a personal representative of the deceased or the person appearing to have a valid claim gives notice in the prescribed form to the Director.
By virtue of this amendment:
I. An employee now has the ability to assign short-term benefits to his/her employer
II. NIC Pensioners are now able to instruct the NIC to pay their pension directly to a financial institution, an elderly home or an organization approved by the NIC Board.
III. A beneficiary of a funeral grant may instruct that benefit be paid directly to a funeral home.
The National Insurance Corporation (Amendment) Regulations No. 8 of 2025 provide for new claim forms with respect to certain benefits and other prescribed forms to support the amendments to the Act. In addition, it broadens the manner of payment of contributions to facilitate the inclusion of additional forms, places and methods of payment.
The changes mean that the NIC can now move ahead with plans to introduce online and other forms of electronic payment services.
These recent amendments represent a significant step forward for the National Insurance Corporation as it moves to enhance the efficiency and accessibility of its services to meet the evolving needs of contributors and their families.