NIA directs insurance companies to provide clear, timely information to clients

Kathmandu, Aug. 24

The Nepal Insurance Authority (NIA) has directed all insurance companies to provide timely and clearly understandable information, via electronic means or in writing, to the insured individuals regarding the loan amount provided against the insurance policy, the method of interest calculation, the loan repayment schedule, and the consequences of non-repayment.

This directive was issued in response to complaints that insurance companies have not been providing adequate information to the insured regarding the outstanding loan amounts and the method of interest calculation during loan recovery, the NIA said in a statement on Sunday.

As a result, deductions from the final maturity payments or claim amounts have caused difficulties for the insured and beneficiaries.

"Insurance companies must ensure that, when providing loans against insurance policies, the insured is mandatorily informed—through SMS, email, or letter—of the loan amount, the method of calculating interest, the repayment schedule, and the consequences of non-payment, in a manner that is clearly understandable, at least thirty (30) days before the end of the interest payment period," read the directive.

The NIA also reminded insurance companies that it is their duty to issue reminders or notices to draw the attention of the insured regarding the recovery of loans and interest.

Published in The Rising Nepal daily on 25 August 2025.

Prabhu Insurance to distribute 18% bonus share

Kathmandu, Aug. 8 

Prabhu Insurance Limited has announced the distribution of 18 per cent bonus shares for the last Fiscal Year 2024/25. 

The bonus shares were announced at the company’s 29th Annual General Meeting held in Kathmandu on Friday. 

Despite adverse economic and market conditions, the company achieved its highest-ever profit in the last fiscal year, providing attractive returns to its shareholders, according to Rajendra Malla, Chairperson of Prabhu Insurance. He said that this record profit distribution has reinforced Prabhu Insurance’s position as a stronger and more reliable institution in the market.

According to Malla, the company has been strictly complying with regulatory requirements, while implementing various policy reforms and advancing long-term strategic plans to strengthen internal governance.

Through digital platforms, the company has made the claims settlement process, policy renewals, and other insurance services simpler and more effective, he said. 

Under its corporate social responsibility commitments, the company has prioritised activities that directly engage with society and contribute to the sustainable development of communities such as in health, education, environmental protection, and disaster management.

Published in The Rising Nepal daily on 9 August 2025.

Insurers directed to focus beyond first premiums to improve coverage, quality

Kathmandu, July 14

The Nepal Insurance Authority (NIA) has directed life insurance and micro-life insurance companies to mandatorily include renewal premiums and term life insurance premiums in their business targets for the upcoming fiscal year 2025/26.

In a circular issued to all life and micro-life insurers, the authority instructed that all employees, departments, regional, branch, and sub-branch offices must set business goals (monthly, quarterly, half-yearly, and annually) that include not only the first premium collection but also renewal and term life insurance premiums.

The authority has issued this directive following complaints that insurers were giving priority only to life insurance policies that involve large premium payments, either regular or single, when assigning business targets to their employees and departments, it said in a statement on Monday.

Sushil Dev Subedi, Executive Director of the NIA, said in the statement that due to the insurers’ focus on collecting high-value premiums, they have failed to expand insurance coverage to low-income groups, leading to issues such as policy lapses and surrenders before maturity, and posing challenges to the delivery of quality and reliable insurance services.

In this context, the authority has made it compulsory for insurance companies to consider all types of premium contributions, not just the initial ones, in their business planning, with the aim of expanding insurance access and improving service delivery across different income segments, read the statement. 

Published in The Rising Nepal daily on 15 July 2025.   

NIA unveils policy and programmes for FY 2025/26

 Kathmandu, July 9

Chairman of the Nepal Insurance Authority (NIA), Sharad Ojha on Tuesday, unveiled the Annual Insurance Policy and Programme for the upcoming Fiscal Year 2025/26 for the first time since its inception.

The insurance sector regulator has launched the new Policy and Programme as a new initiative with the objective of developing a competitive and trustworthy insurance system, enhancing institutional governance in the sector.

At a press conference organised by the Authority in Kathmandu, Ojha announced that the NIA will formulate and implement its programmes and budget for the coming year in line with the newly released policy and programme.

Highlighting that the policy aims to guide the insurance sector towards a projected path of development, he said that it clarifies the direction and initiatives the Authority will undertake during the upcoming fiscal year. He further mentioned that insurance companies will also be required to develop and implement their respective budgets and programmes in accordance with this policy.

Executive Director of the NIA, Sushil Dev Subedi, informed that the practice of introducing an annual policy and programme has been initiated as a guiding document to propel the insurance sector forward in a planned and predictable manner.

The policy and programme for the upcoming year prioritise protecting the interests of policyholders, expanding access to insurance, promoting financial stability through risk transfer mechanisms, managing risks related to climate change and disasters, adopting international best practices and research-based policymaking, and strengthening the use of information technology and digitalisation.

The policy includes provisions to make insurance services more accessible via digital payments and alternative distribution channels, develop systems for easy dissemination of information on policy terms and benefits, implement a ‘Transparency Dashboard’ among insurers to enhance accountability, and introduce legal provisions for the protection of policyholders' rights.

Likewise, it also outlines measures to prioritise micro and agricultural insurance, extend coverage to remote and geographically disadvantaged areas, collaborate with provincial and local governments, the private sector, and other stakeholders for insurance sector development, and prioritise insurance-related studies and research.

Furthermore, it includes plans to integrate complaints and grievance mechanisms into digital platforms, revise insurance documents and guidelines as needed, enhance anti-money laundering efforts, and strengthen the regulatory capacity of the NIA by aligning with international best practices.

Additional initiatives outlined in the policy include developing policies and insurance products based on research and policyholder needs, mandating insurers to design at least one innovative insurance product, updating existing legal provisions concerning investment and reinsurance, and developing legal structures that prioritise climate risk management.

The policy and programme also propose establishing an Insurance Information Centre and an Insurance Development Fund, fostering a technology-friendly insurance environment, developing a 'Regulatory Alert System' for effective coordination with insurers and implementing a knowledge management system at the NIA.

In line with a risk-based inspection approach, the NIA plans to strengthen supervision, monitoring, and inspection mechanisms, revise legal frameworks for risk-based capital as needed, conduct feasibility studies for risk-based premium calculation systems, implement key performance indicators to conduct quarterly performance reviews of insurers, and carry out necessary research on disaster risk reduction in the insurance sector.

As envisioned by the Insurance Act and regulations, the policy also includes provisions for insuring students in government schools through the Insurance Development Fund, and launching pilot insurance schemes to bring targeted groups and communities under coverage using the same fund. 

Published in The Rising Nepal daily on 10 July 2025.   

Cabinet approves positions at HIB, hospitals

Kathmandu, May 3

The Council of Ministers has approved a proposal by Health and Population Minister Pradeep Paudel to add temporary positions to address the problem caused by a shortage of manpower in the assessment of claim payments by the Health Insurance Board (HIB).

At its meeting last Wednesday, the Cabinet decided to add 402 personnel to the Board. Minister Paudel had proposed the approval of temporary positions for 56 officers and 346 assistant-level and unclassified staff.

Due to a lack of manpower, the Board has only been able to complete the assessment of claims up to mid-July last year. The Board’s Executive Director, Dr. Raghuraj Kafle, expressed confidence that the additional temporary personnel would help complete the evaluation of the remaining claims within the current fiscal year.

According to the Cabinet's decision, temporary positions have also been approved for other institutions: 129 for Sushil Koirala Prakhar Cancer Hospital in Khajura, 141 for Geta Hospital in Dhangadhi, and 313 for Dadeldhura Hospital.

Spokesperson of the Ministry of Health and Population, Dr. Prakash Budhathoki, said that this move is expected to ease operational difficulties faced by these hospitals. “Until the work on organisational and management structures is completed, it is believed that this will facilitate the operation of services at the Board and the hospitals,” he said.

Published in The Rising Nepal daily on 4 May 2025.

Health Insurance Scheme faces teething troubles

Efforts being made to integrate all state-funded health programmes

 

Kathmandu, Apr. 26

Even after a decade since the micro-health insurance facility was launched in Nepal with the aim to establish universal access for citizens to quality health services, the programme is facing multi-pronged challenges including the management of funds, shortage of human resources, and inability to review the increasing claims submitted by the service providers.

The programme was launched on a trial a decade ago and was formally implemented after two years following the enactment of the Health Insurance Act, 2017.

Due to the acute shortage of funds, payment liability has piled up at the Health Insurance Board (HIB). It has not been able to reimburse the amount claimed by the service providers (hospitals and health centres) since the beginning of the current Fiscal Year 2024/25.

The HIB is clearing the dues from the last FY 2023/24 this year. It has about Rs. 17.5 billion outstanding. "Estimating the additional claims in the remaining period of the current fiscal year, the total amount remaining for payment by the end of this fiscal year is expected to be Rs. 24 billion. There is a challenge in developing the capacity to make timely payments," the HIB said in a white paper about its status published a month ago.

Meanwhile, the amount of claims submitted to the board goes as up as 40,000 a day while the team to review those claims is struggling with limited human resources and technology.

"The HIB has a team of about 25 medical experts including doctors, nurses and lab technicians to review the claims filed by 485 health institutions across the country. Without additional human resources, this cannot be resolved," said Bikesh Malla, Information Officer of the Board.

With the current setup, the HIB can review maximum 7,000 cases a day. As a result, the claim verification of the last FY 2023/24 is still pending. The White Paper mentions that the number of claims received by the board and not reviewed is about 9 million by the end of February. The paper also maintains that due to insufficient skilled manpower in claim review and the inherently weak method and process adopted, timely verification of claims has not been possible.

It has left the Board, service providers, and the insured all disadvantaged.

 

 

 

Deficit budget, workforce

The HIB is struggling with the limited sources of income. The fund earns about Rs. 3 billion to Rs. 3.5 billion from the premium charges and receives approximately Rs. 7.5 billion from the budget in a year. For the last three fiscal years, the government has disbursed the same amount of money to the Board.

According to Malla, the HIB has approved a budget of Rs. 26.59 billion for this year but it is likely to receive one third of that amount. Through the Ministry of Health and Population (MoHP), it has asked for the funds of Rs. 17.5 billion from the Ministry of Finance (MoF).

But since the country is also struggling with fund management, the MoF had pledged to provide additional Rs. 3 billion on top of the Rs. 7.5 billion announced through the annual budget. If the sum of the premium is also added to this fund, total size of the fund at the HIB reaches Rs. 14 billion. Even then, there will be a shortfall of Rs. 10 billion.

Meanwhile, the Board has been facing growing operation cost issue including Rs. 23.4 million in house rent and millions of rupees for employees' salaries.

"The MoHP has directed the Board to reduce the number of consultants, use government buildings instead of renting out space for offices and maintain full transparency," Spokesperson of the MoHP, Dr. Prakash Budhathoki, said to The Rising Nepal.

According to him, to overcome the challenges posed by the shortage of workforce, the Ministry has given a positive nod to hire 25 experts to review the pending claims.

Likewise, inability to make the operations fully automated has its toll on the board, service providers and service seekers.

Due to the inability to use technology that can automatically reject treatments outside the standards set by the Board and provide information on false claims, there is a risk of some service providers entering false claims and even receiving payments, said the Board.

To address this malady, the HIB has accorded priority to implementation of information technology. New bylaws are formulated and submitted to the Cabinet with a provision to audit the prescriptions of the doctors to discourage the false claims, informed Dr. Budhathoki.

 

Hassles to patients

Hospitals discriminate the patients that come to obtain the health facility under the insurance programme. Service seekers have complained that they have to wait for a long time to obtain the services and have to face hassles at the hospitals.

The White Paper of the HIB has accepted the fact that there have been widespread complaints that the health service offered by service providers has not been effective. "Problems such as having to receive service only at the designated first service point, unavailability of doctors at the first service point, not being able to get tests done on time, and unavailability of medicines are recurring," read the document.

Patients reaching Bir Hopspital, Tribhuvan University Teaching Hospital, Chitwan Medical College and other institutions have to spend more time to get their health checked or receive medicine due to additional bureaucratic hassles.

Malla of the Board said that due to limited capacity of the hospital, small number of equipment and shortage of human resources have been the causes behind such challenges that are causing dissatisfaction on the part of patients.

As a result, the programme has been witnessing a high dropout rate. In the current FY 2024/25, the dropout rate stands at 54 per cent. Although it was lower than 64 per cent two years ago, this is significant and needs a serious attention, experts say.

A Health Ministry official said that the Board has failed to identify the reasons behind this high dropout rate and address it in time.

Likewise, the Board has not been able to train the service provider health institutions with which it has agreements and make them proficient in providing services. The capacity to monitor and regulate the services provided by service providers has not been developed. The Board has faced difficulties in controlling quality due to the inability to pay service providers on time, according to the White Paper.

The Board also doesn't have monitoring and evaluation guidelines while checklists and standards need to be updated. It said that while the practice of joint monitoring has not taken place so far, multiple suggestions and conclusions received from monitoring have also not been implemented.

The NIB, in collaboration with the MoHP, plans to bring the first service points into operation in all local levels of the country, enhance their capacity and streamline the referral system.

 

Strategy to manage funds

The MoHP and NIB have begun work on addressing the challenges in the fund management. Health Minister Pradip Paudel has been stressing on strengthening the Board and expanding the programme so that it could cover every citizen of the country.

He even went further to increase the health coverage of up to Rs. 500,000 from the current purse of Rs. 100,000 per family. Such amount for senior citizens and chronically ill people is Rs. 200,000. A family can obtain the facility with premium of Rs. 3,500 while senior citizens above 70 years of age need not pay any premium.

Minister Paudel has already decided to activate the Health Insurance Fund and deposit 1 per cent of the total income of the federal hospital into it. The Finance Ministry has already given a positive nod to his Minister-level decision.

The Health Ministry is of the view that more reforms would be made as per the suggestions of the Task Force on Health Insurance Reform. It has also been saying that all the government implemented health and treatment support programmes should be integrated with the Fund while government employees should contribute 1 per cent from their salary and an equivalent amount should be contributed by the government to the fund.

While accepting the report of the Task Force last month, Minister Paudel said that if all the health-related programmes of all levels of the governments were consolidated, about Rs. 30 billion could be collected into the Fund. Many local governments have been executing free or subsidised health insurance programmes.

Dr. Budhathoki of the Health Ministry said that approximately Rs. 15 billion could be consolidated into the Fund if the free or subsidised health programme for deprived people, senior citizens, people with disability and pregnant or lactating mothers could be brought under the HIB.

However, it is likely to take a couple of years to complete this task.

Similarly, the Health Ministry also wants to bring the health insurance provided by the Social Security Fund to the registered employees under the HIB. But the Ministry of Labour, Employment and Social Security is reluctant to do so.

 

A successful programme

Given the achievements the health insurance programme made in the last eight years, it can be termed as 'successful' minus the shortage of funds. The programme is expanded to 749 local levels of 77 districts of the country. Cumulative registration to the programme so far has reached 8.95 million while active insured individuals by the end of February this year was 5.75 million – 20 per cent of the total population.

Likewise, the number of active enrolled households has gone up from 238,492 in 2017 to 982,062 – excluding senior citizens - by February 2024. Including senior citizens, 2.07 million families are active in health insurance, making it a 31 per cent of the total households, according to the Board.  

While family members up to five individuals are considered one unit in the insurance programme, senior citizens are considered one unit per individual.

As per the NIB statistics, there is imbalance in participation among the provinces. Gandaki province has 34 per cent of the total insured under the health insurance, followed by Koshi with 33 per cent, Bagmati 26 per cent, and Lumbinin and Karnali 14 per cent each. But Sudurpaschim and Madhes have only 11 per cent and 7 per cent share in the total insured population.

"The low participation of provinces lagging behind in human development is a matter of concern. It seems necessary to give more priority to including everyone in health insurance, especially the backward classes, communities, and regions," the Board said.

 Published in The Rising Nepal daily on 26 April 2025.        

InDrive introduces accident insurance

Kathmandu, Feb. 14

InDrive, a mobility and urban services platform, has introduced accidental insurance for passengers and drivers.

According to the company, the insurance implemented in collaboration with Sagarmatha Lumbini Insurance Company Limited (SALICO) aims to enhance safety and provide financial security to both drivers and passengers in case of unforeseen incidents during their rides.

Rita Pokharel, Country Representative of inDrive Nepal, and Chunky Chhetry, CEO of SALICO signed the agreement to this effect.

Under this agreement, Rs. 800,000 will be provided in case of death or permanent total disability of drivers or passengers.

Likewise, up to Rs. 80,000 will be reimbursed for medical treatment expenses incurred due to an accident. For minor passengers, the compensation will be 50 per cent of the insured amount.

Pokharel said that the insurance service will provide riders and passengers with peace of mind, allowing them to travel with confidence.

"This insurance coverage will provide essential financial protection, reinforcing our dedication to creating a secure ride-hailing environment in Nepal,” she said.

The inDrive app has been downloaded over 240 million times, and was the second most downloaded mobility app in 2022 and 2023. In addition to ride-hailing, inDrive provides urban services including intercity transportation and delivery.

Published in The Rising Nepal daily on 15 February 2025.  

NAFIJ arranges group accident insurance coverage for members

Kathmandu, Jan. 9

Nepal Association of Financial Journalists (NAFIJ) has arranged group accident insurance coverage worth Rs. 165 million for its 235 members and advisors of the organisation.

To implement this scheme – insurance coverage of Rs. 700,000 per member, NAFIJ signed an agreement with Sagarmatha Lumbini Insurance (SALICO) and Siddartha Premier Insurance on Wednesday.

The agreement was signed by Chunki Chhetry, CEO of SALICO, Birendra Bahadur Baidawar, CEO of Siddhartha Insurance, and NAFIJ President Menuka Karki.

Under the agreement, each NAFIJ member is insured for Rs. 700,000 to mitigate risks associated with their professional field activities. Speaking on the occasion, Karki said that journalists work under challenging conditions, and this insurance ensures support in the unfortunate event of an accident.

Likewise, Chhetry expressed confidence that the group accident insurance would enhance journalists’ safety and contribute to the dissemination of reliable information.

Similarly, Baidawar said that the insurance arrangement would motivate journalists to undertake field assignments with greater confidence.

 Published in The Rising Nepal daily on 10 January 2025. 

NIA to take swift action against insurance companies involved in misconduct

 Lalitpur, Jan. 1

Newly appointed Chairman of the Nepal Insurance Authority (NIA), Madan Dahal, has pledged to take swift action against the companies involved in misconduct.

"After assuming the new responsibility, I have already directed the insurance companies to make a provision to deposit the claim payments into the bank account of the insured person instead of calling them to claim the money," Dahal who is also the Joint Secretary at the Ministry of Finance said at an interaction with Journalists on Wednesday.

Earlier, He has served as a member of the Board of Directors of the NIA for three months. He was assigned the leadership at the insurance sector regulator following the removal of former Chairman Surya Prasad Silwal after the Commission for the Investigation of Abuse of Authority (CIAA) filed a case at the Special Court over the discrepancy in his date of birth.

According to him, delayed justice is justice denied so the NIA is making efforts to ensure prompt claim settlements for policyholders. "If any life insurance company delays claim payments even after receiving the required documents, we will take strict action against them," said Dahal.

Expansion of the insurance base will depend on the efficient payment of insurance amount and facilitation to the insured people in various grievances. "I have received hundreds of complaints for non-payment of insurance money to the insured individual," he told the journalists.

Likewise, the provision to get approval from the NIA for the appointment of the CEO of the insurance companies has also been scrapped. This was just a practice, not a legal binding to the companies.

Dahal also announced that a new Executive Director would be appointed to the Authority during his tenure.

"Process for the appointment of the executive director of the NIA would begin promptly. The absence of the ED has hampered the operations of the Authority," he said.

Similarly, he informed that training for the surveyor and insurance agent will be designed and implemented as per the suggestions of the committee formed for the same task.

Stating that disbursement of the grant money for the agriculture insurance is delayed, he maintained that there were two reasons behind the delay - fake claims in the part of customers and insurers and resource crunch in the part of the government.

Published in The Rising Nepal daily on 2 January 2025. 

Non-life insurance association draws SEBON’s attention to ‘impractical’ regulation provision

Kathmandu, Dec. 22

The Non-Life Insurance Association of Nepal has drawn the attention of the Securities Board of Nepal (SEBON) to a provision barring directors of the non-life insurance companies from selling their shares in the respective institutions for one year after resigning.

According to Regulation 38 (1a) of the Securities Registration and Issuance Regulations, 2079, directors are prohibited from buying or selling shares of the concerned company during their tenure and for a year following their departure.

In a statement issued on Sunday, the association has termed this rule 'impractical'.

"The provision regarding the sale of shares is extremely impractical. Directors, like other shareholders, are investors who represent shareholders in the board of directors. Restricting their ability to sell shares solely on this basis is unjust," read the statement.

A delegation led by the association's president, Rajendra Malla, who is also the former president of the Nepal Chamber of Commerce, met SEBON Chairperson Santosh Narayan Shrestha on Sunday to request an amendment to the provision.

Malla said that from an investment perspective, there is no difference between the financial interests of directors and other shareholders. The association also argued that directors, being shareholders themselves, should not be deprived of utilising their investments like others.

Malla further stated that prohibiting a businessperson from selling movable assets could hinder diversification efforts, entrepreneurial activities, and even essential household financial needs.

The association informed in the statement that it proposed the regulation be amended to allow directors to sell up to 50 per cent of their shareholding while still holding their position. It noted that the current restriction not only hampers the investment climate but could also negatively impact foreign investment prospects.

"Restricting any individual from buying or selling shares for a year after leaving their position is unreasonable. This provision should be revised to facilitate a more favourable investment environment," the statement read.  

Published in The Rising Nepal daily on 23 December 2024.   

MoF directs NLIC for up-to-date audit

Kathmandu, Dec. 4

The Ministry of Finance (MoF) of Nepal has directed Rastriya Jeevan Beema Company Limited, government promoted insurance company, to complete its audit within four months from now.

Speaking at a meeting held today at the MoF, attended by officials from the company, Deputy Prime Minister and Finance Minister, Bishnu Prasad Paudel, said that prolonged delays in conducting audits will do good to none. He instructed stakeholders to provide necessary support to ensure the audit is completed on time.

The company has not conducted its audit since the fiscal year 2014/15.

The meeting also decided that the company’s Annual General Meeting (AGM) will only take place once the final audit is concluded.

The meeting was attended by the representatives from the Office of the Auditor General, insurance sector regulator Nepal Insurance Authority, MoF, and officials from the company.  

Published in The Rising Nepal daily on 5 December 2024.  

Crest Micro-Life Launches 'Advance Payment Micro Life Insurance Plan'

Kathmandu, Nov. 20

Crest Micro Life Insurance Limited has launched a new product Samriddhi Advance Payment Micro Life Insurance Plan on Wednesday, November 20.

The new plan offers periodic advance payments at five-year intervals during the policy term, with the remaining sum assured and additional guaranteed benefits paid upon maturity, the company said in a statement.

The periodic payments to the insured can assist with various life needs, including education, weddings, cultural and religious events, or even business ventures.

Individuals aged between 18  and 50 years can buy this product with Rs. 50,000 to Rs. 500,000 sum assured. The maximum maturity of this product is 70 years of age. It comes with 15, 20 and 25 years of policy terms and payment of premium can be made on an annual, semi-annual or quarterly basis.

According to the company, benefits of the plan include periodic advance payouts, low premium rates, secure savings and reliable investment options, income tax benefits, financial support for dependents and security in old age and assurance of a good future for children

"This plan ensures financial protection from the moment the policy is purchased, even as portions of the sum assured are returned in advance. Despite the advance payouts, full life coverage remains intact, along with additional benefits, including maximum maturity benefits, death benefits, 100 per cent of the sum assured for accidental death," read the statement.

Other benefits of the product include up to 100 per cent coverage for disability due to accidents, and a premium waiver in case of permanent disability. 

Published in The Rising Nepal daily on 21 November 2024.  

Intl conference on inclusive insurance kicks in Capital

Kathmandu, Oct. 22

International Conference on Inclusive Insurance (ICII) 2024 has kicked off in the Capital on Tuesday with the aim of deliberating on advancing inclusive insurance solutions for low-income and vulnerable households and micro, small and medium-sized enterprises.

The 20^th edition of the conference, hosted by the Nepal Insurance Authority (NIA), Nepal Insurers' Association, Life Insurance Association Nepal and Nepal Laghu Bimak Sangh, has drawn over 500 participants, including experts from NGOs, development organisations, regulatory bodies, policy experts and insurance industry representatives from 43 countries across the globe.

According to the organisers, the 5-day ICII 2024 features 25 sessions which will focus on the topics like climate risk insurance, digital innovations in micro-insurance, and strategies to overcome barriers to scaling inclusive insurance.

Addressing the inaugural session of the conference, Vice-President of Nepal, Ram Sahay Prasad Yadav, emphasised the importance of inclusive insurance for Nepal.

According to him, inclusive insurance is a crucial step in strengthening the economic and social structure of the country, offering economic security to various members of society, especially the poor and deprived.

Vice-President Yadav stressed the importance of insurance in protecting people from financial adversities and ensuring their financial stability in unexpected situations. "Health and life insurance are particularly emphasised in Nepal to ensure medical facilities and family life security for every individual in society," he said.

He urged the government and insurance companies to work together to ensure that every person, whether in rural or urban areas, has access to insurance.

Vice-President Yadav highlighted Nepal's vulnerability to climate change, with around 80 per cent of the population exposed to climate-related risks. He pointed out the low level of insurance awareness and the significant insurance protection gap, which leaves many citizens vulnerable to growing threats.

Speaking on the occasion, Aroup K. Chatterjee, Principal Financial Sector Specialist to the Asian Development Bank, said that insurance eases the financial burden of the government during the disasters.

"The savings with the insurers can also be mobilised to the development sectors including infrastructure construction," he said.

He informed that protection gap is alarmingly high globally with about 95 per cent of risk exposure uninsured in emerging markets.

According to Chatterjee, in the Asia-Pacific, the risk gap is estimated at 886 billion dollars in premium term. About 280 billion dollars protection is needed against the natural disasters in the region but less than half of it is insured.

Likewise, the threat of climate risk hangs over the protection gaps with the Asia-Pacific likely to suffer the worst economic consequences. "It is threatening industry, machinery and livelihood. We need adaptation and mitigation measures against such threats. Clear understanding of the climate risks and how insurance can contribute to building societal resilience is therefore called for," he said.

Chatterjee said that the insurance industry can help people better tap into insurance and other financial products by focusing on affordability, accessibility, awareness, administration and trust.

The insurance sector must firmly address the protection gap through innovation, technology, partnerships, better regulation, consumer protection, and monitoring and evaluation, he said.  

However, commercial reliability of the projects and personalizing the insurance plans are also important factors. According to Chatterjee, the sector needs to collaborate with the government agencies and create a strong public-private partnership while the regulatory bodies should promote growth and competition while also protecting consumer rights, and maintaining transparency in the market and business. 

Likewise, Surya Prasad Silwal, Chairman of the Nepal Insurance Authority, called for collaborations among the authority, insurers and other concerned agencies from the public and private sector.

"The government has prioritised insurance in its current fiscal policy according importance to it. We are putting our efforts to bridge the protection gap," he said while also stressing the need for raising awareness taking note from the insignificant claim after the last month's natural disasters.

Chunky Chhetry, President of Nepal Insurers' Association, said that the insurance industry in Nepal has to set some parameters to evaluate, monitor and measure the success of the inclusive insurance products and programmes. 

 Published in The Rising Nepal daily on 23 October 2024. 

Anju Shrestha becomes CEO of HEI

Kathmandu, Oct. 4

Himalayan Everest Insurance (HEI) Limited has appointed Anju Shrestha as its new Chief Executive Officer, making her the second female CEO in Nepali non-life insurance companies. She officially assumed her role on Friday.

She began her career on February 28, 1996, as an Assistant Officer. Her dedication, hard work, and commitment to excellence have enabled her to rise through the ranks, becoming a respected figure in the non-life insurance industry, HEI informed in a statement. As CEO, she now brings her wealth of experience of 29 years and strategic insights to lead HEI.

Expressing her excitement at the new role, Shrestha said, “I am honoured to lead Himalayan Everest Insurance and build on its strong legacy. My focus will be on fostering innovation and driving customer-centric solutions while maintaining a commitment to sustainable growth. I aim to create an environment of collaborative growth with accountability, all founded on a culture of deep professional respect.”

Mahendra Krishna Shrestha, Chairman of HEI, expressed his confidence that the new CEO's extensive industry experience, combined with her understanding of both opportunities and challenges, would take HEI to greater heights.

 Published in The Rising Nepal daily on 5 October 2024. 

Sun Life launches Medicare and Bal Samriddha plans

 Kathmandu, Nov. 23

On the occasion of its 7^th anniversary, Sun Nepal Life Insurance Company Limited has released two insurance plans - Sunlife Medicare and Bal Samriddha Jeevan Bima Yojana on Sunday.

In Sunaulo Bal Samriddha Jeevan Bima Yojana, payment is fixed on the death of the proposer of the insurance plan. If the proposer dies within the insurance period, the sum assured will be paid and the insured will be provided with a monthly income benefit of up to 2 per cent of the sum assured until the insurance period. The insurance company will cover up to Rs. 5 million for the treatment of fatal disease of the proposer.

Likewise, 'Sunlife Medicare' is an insurance scheme introduced to facilitate medical treatment in emergency situations. "We would like to inform you that this type of insurance plan has been launched for the first time in Nepal. We would like to inform you that it is expected that ordinary Nepali citizens can benefit from this plan, which provides up to Rs. 100,000 for medical treatment done in hospital," the company said in a statement.

With the entry into the eighth year of its operation, the company has conducted the audit of the information related to ISO 27001:2008 related to information security management and has committed to implement the system to level the company in the future.

On the occasion of the seventh anniversary, the company has completed week-long programmes under the slogan 'seven years, seven province, seven day, seven good deeds'. A morning procession, tree planting, food and clothing distribution, monastery-temple cleaning, blood donation, financial literacy workshops and distribution of educational materials have been done under seven good deeds.

On this occasion, the company planted seven types of plants including banyan, peepal, Rudraksha, red sandalwood, Agarwood, sandalwood and Swami at various places across the country.

Likewise, educational materials and food were distributed to women and children. A temple cleaning and blood donation programme has been organised under the slogan 'Taking steps together with the community'. A workshop on financial literacy has been conducted among students of various schools, on the occasion, informed the company.

Published in The Rising Nepal daily on 24 September 2024.

Crest Micro Life Insurance Limited issuing shares

Kathmandu, Sept. 3

Crest Micro Life Insurance Limited is in the process of issuing shares to the general public. It has RBB Merchant Banking Limited as the issue manager. The two companies signed an agreement on Monday. Crest also signed another agreement with the RBB Mutual Fund-1.

Crest has received ICRA double B rating from ICRA Nepal Limited, a credit rating organisation. According to ICRA Nepal, the company receiving such a rating is considered to be moderately safe in terms of meeting its financial obligations on time, the company said in a statement.

"Although the company managed to make a profit within a short period of its establishment, the rating is affected by the operational, management and risk assessment expenses in the initial years," read the statement.

According to the company, in the near future, business expansion including business diversification, quality investment and controlled claim payment process will have a positive impact on the rating.

The company is going to issue 2.2 million units of shares amounting Rs. 225 million - about 30 per cent of the company's issue capital Rs. 750 million. Unit price of each share is Rs. 100.

Crest Micro Life is a company registered as a public company in the office of the Registrar of Companies, and established in accordance with the Insurance Act, 2079 and Insurance Regulations, 2049, with the aim of providing micro life insurance services to the residents of low-income, middle class and backward areas, and the people of marginalised communities.

It's in operation for the last one and a half years. It is offering its services from 23 branches and sub-branches. 

Published in The Rising Nepal daily on 4 September 2024.        

GIAN seeks correction of strict provisions on share sales

Kathmandu, Sept. 3

The General Insurance Association of Nepal (GIAN) has drawn the attention of the Securities Board of Nepal(SEBON) to the provision that the shares owned by the directors of the company cannot be sold for one year.

According to rule 38(1a) of the Securities Registration and Issue Regulation, 2079, the arrangement that the directors cannot buy and sell the shares of the related company during their tenure in office or for one year after they have retired from such office is impractical, they said.

"We would like to inform that the provision related to the sale of shares is very strict. It is not fair to discriminate against them so harshly as the directors are also investors like all the remaining shareholders in the company and they are elected by the general meeting of the shareholders and represented in the board of directors on their behalf," the GIAN said in a statement on Tuesday.

A team of GIAN led by its President Rajendra Malla which included Vice-president Manohardas Mul, General Secretary Mahendra Krishna Shrestha, Treasurer Ramesh Niraula and members Azad Shrestha and Kunal Kayal requested Chairman of the SEBON, Mahesh Baral to correct that provision.

"From the point of view of investment, there is no difference between the financial interests of the other shareholders of the company and the financial interests of the directors," said Malla.

The association has mentioned that depriving the directors of using the investment they made in the company like other shareholders is not fair.

Malla also said that if a businessperson cannot sell his movable property, there will be an obstacle in the diversification of business and essential household work.

The NGIA has requested the SEBON to make a new provision that would allow the selling of up to 50 per cent of the share ownership while holding the position of director. 

Published in The Rising Nepal daily on 4 September 2024.        

NIMB Ace to manage Star Micro-Insurance's IPO

Kathmandu, Aug. 28

Star Micro Insurance Company Limited has signed an agreement with NIMB Ace Capital Limited to act as the issue and sales manager for its upcoming Initial Public Offering (IPO).

The IPO will consist of 2.25 million units of ordinary shares, each priced at Rs. 100, amounting to a total of Rs. 225 million which represents 30 of the company’s issued capital, informed the NIMB Ace Capital.

Star Micro-Insurance was registered in December 2022 and received its non-life micro-insurance license in August last year. It has been providing non-life micro-insurance services across various regions of the country.

The agreement was signed by Bishwo Ram Timila, CEO of Star Micro-Insurance and Sachindra Dhungana, General Manager of NIMB Ace.

 Published in The Rising Nepal daily on 29 August 2024.        

HEI receives Insurer of the Year award

 Kathmandu, July 14

Himalayan Everest Insurance (HEI) has been awarded 'Domestic General Insurer of the Year - Nepal' and 'Strategic Partnership of the Year - Nepal' at the Insurance Asia Awards 2024 held in Singapore.

Sanjaya Aryal, Deputy General Manager of the company, said, “These awards inspire us to push boundaries, set new standards, and deliver exceptional services to our clients.”

Both these International Awards celebrate HEI's instrumental role in bringing financial inclusion to the masses through its digital portfolio and by leveraging strategic partnerships with leading digital product companies such as Ncell, eSewa, and Khalti, the company said in a statement.

It further said that these accomplishments solidify HEI's position as a leader in the insurance industry and reaffirm its commitment to driving innovation and excellence.

Published in The Rising Nepal daily on 15 July 2024.        

Prabhu, Mahalaxmi Life Insurances merge

Kathmandu, July 14

Prabhu Mahalakshmi Life Insurance Limited has started its joint operation following the merger of two companies from Friday.

The company was created after the merger of Prabhu Life Insurance Limited and Mahalaxmi Life Insurance Limited. Raju Raman Paudel, Executive Director of Nepal Insurance Authority (NIA), inaugurated the joint operation in the newly relocated central office building amid a brief ceremony.

Following the NIA's directives to increase the paid up of capital life insurance company to Rs. 5 billion, the two companies have decided to go for a merger in mid-July last year.

The merger was completed today with the approval of the NIA, Company Registrar Office and Securities Board of Nepal after the decision of the general assembly last month. A couple of days earlier, the board of directors of the company had appointed Ramesh Kumar Bhattarai as the Chief Executive Officer of the company.

Speaking on the occasion, Paudel congratulated them for completing the merger despite facing long-term problems. He expressed his hope that the company will do business amid healthy competition by introducing new insurance policies as per the market demands.

Umesh Lal Shrestha, Director of the company, said that the insurance market is becoming highly competitive. Paid up capital of the new company is Rs. 4.29 billion. It has 442 employees and 115 permanent branch and sub-branches.

  Published in The Rising Nepal daily on 15 July 2023.