FM directs IB to prepare to pay for COVID-19 insurance

Kathmandu, Sept.29

Finance Minister Janardan Sharma has directed the Insurance Board (IB) to initiate preparations to assess the pending payment of the COVID-19 health insurance.

Expressing concerns about the issue, he has started discussions about the pending payment of the insurance.

He had summoned Chairman of the Insurance Board, Surya Prasad Silwal, and other officials of the insurance-sector regulator to discuss the resources required for making the remaining payment and a way out of the current problem.

According to insurance companies, more than Rs. 11 billion is due for the coronavirus insurance.

During the initial days of the pandemic in Nepal, the Board had created an insurance pool with the resources from the insurers, reinsurance companies and the government to support the virus-infected patients. However, the pool soon depleted as the number of patients increased exponentially and resources were used up.

Earlier, in August this year, Nepal Insurers’ Association (NIA) had postponed the COVID-19 insurance claims indefinitely. It had said that the payment was halted as the government did not release the amount.

Non-life insurance companies had sold about 1.75 million COVID-19 policies and collected Rs. 1.5 billion. They have paid claims amounting to Rs. 4.78 billion so far.

In the remaining payment, government’s share will be more than 3.5 million while the Board has to pay more than Rs. 3 billion.

COVID-19 insurance had two categories: A of Rs. 100,000 and B of Rs. 50,000. For A category, individual premium was Rs. 1000 and group or family premium was Rs. 600 each.

Likewise, for B category, individual premium was Rs. 500 and group and family premium was Rs. 300 each.

Published in The Rising Nepal daily on 30 September 2021.