We have brought guidelines to provide access to reinsurance companies with good ‘ratings’ at the international level: President Silwal

Kathmandu : Chairman of Nepal Insurance Authority Surya Prasad Silwal has said that the authority has made necessary policy arrangements so that insurance companies can re-insure with internationally rated reinsurance companies.

In an interaction between the Insurance Authority and the industry association Morang in Biratnagar, Chairman Silwal said that the property insurance rate guidelines have been brought based on international principles and adequate studies so that insurance companies can re-insure with well-rated reinsurance companies and ensure claims.

He said, “Since reinsurance companies with good international ratings do not accept reinsurance at low insurance rates, some insurance companies in Nepal have reinsured with ‘non-rated’ reinsurance companies, due to which, in some cases, they do not receive claim amount from the reinsurer and there is a delay in the payment of claims from the insurer.” The authority is seriously studying this.

Answering the questions raised by the industrialists, President Silwal said, “According to the marine insurance rate guidelines, 2065, the insurance companies have been instructed to immediately give the 20% discount to the insured when importing goods worth 500 million. 95% of the complaints and complaints received by the insured have been decided in favor of the insured. Arrangements have been made to take complaints related to claims even in the regional office.

Chairman Silwal clarified that the insurance rate of about 90 percent has been reduced in the property insurance rate guidelines and only some insurance rates have been increased based on the risk.

Rajuraman Paudel, Executive Director of Nepal Insurance Authority informed that the insurance companies have been instructed to pay the insurance claims within the stipulated time without delay.

Manoj Kumar Lal Karna, Chief Executive Officer of Himalayan Life Insurance Limited and Sudyumna Prasad Upadhyay, Chief Executive Officer of Sanima GIC Insurance Limited, answered the questions related to the insurance company raised by industrialists. Rakesh Surana, president of industry association Morang, complained that the insurance rates of plastic, plywood etc. have been increased in the property insurance rate guidelines and insurance has been made compulsory even if there is no need for security.

The industrialists participating in the program said that ‘Contractor All Risk’ insurance policy is expensive, insurance companies are delaying payment of claims, in the current financial crisis, there is a need for relief in the insurance rate, like the reduction of bank interest rates, it is necessary to set a maximum insurance rate instead of setting a minimum insurance rate.

According to the guidelines on marine insurance rates, he expressed his opinion with the complaint that the insurance companies were delaying giving 20 percent discount for importing goods worth Rs.50 crores by six months to the end of the financial year.