Welcome to New Year 2081, B.S. 2080 has leaved, Nepal Insurance regulations 2080 waiting to pass from Cabinet,

Kathmandu ; B.S. 2080 has leaved from us, and the year of 2080 had pass without giving the insurance regulations. Even though the Insurance Act was passed in 2079, is still crossed its three year. Cause of not passed regulations there are facing the many challenges in its implementation. Therefore Insurance regulations 2080 waiting to pass from Cabinet

Even though, the National Insurance Policy passed by the Government of Nepal is a new achievement in the insurance sector. But, the National Insurance Policy was also not successful in providing new momentum as the government issued it without sufficient homework.

The insurance sector has passed the year of 2080 between achievement and success. Amidst the extreme financial crisis in the country, insurance companies have managed to increase their insurance business. 2080 can be considered as the year when the scope of insurance has become wider due to the increase in public awareness and awareness about insurance.

The insurance regulations expected to come in 2080 have not yet been released. The Nepal Insurance Authority drafted the insurance regulations, did not proceed without adequate discussion with all concerned agencies, so the insurance regulations have not been issued even after one and a half years since the drafting.As a whole, according to the information in the insurance sector up to the end of January 2080, the coverage of insurance, including term insurance, is 44.70 percent. Last year, total coverage of insurance was 37.35 percent. Similarly, it is seen that 40.23 percent of the total population is covered by insurance. By the end of Chaitra last year, access to insurance had been extended to only 34.52 percent of people. According to the data till the end of February, it is 17.90 percent excluding term, small insurance and foreign employment insurance.

In Chaitra of the previous year, this percentage was only 15.02 percent (since the data is missing from the insurance authority’s website, only up to January has been included).Compared to the end of Chaitra last year, it has been seen in the statistics that there has been a significant improvement in the insurance sector.

2080 for life insurance companies :From the month of Baisakh of the year 2080 until now, the life insurance companies have earned a total insurance fee equal to one billion 46 billion 40 million 87 million rupees. During this period, life insurance companies have managed to sell 1 crore 38 lakh 7 thousand 249 life insurance policies.Currently, there are 1,841 branch offices and 5,822 employees of life insurance companies across the country, according to the report published by the Insurance Authority.

Nonlife Insurance Company:

B.S. From the month of Baisakh of the year 2080 until now, non-life insurance companies have earned 36 billion 46 crore 57 lakh rupees as insurance fees. Companies have sold 19 lakh 59 thousand 386 insurance policies till this period.Nonlife insurance companies have been providing insurance services through a total of 1,091 branch offices across the country with 5,733 employees.

National Insurance Policy issued :

Nepal Insurance Authority has recently released the National Insurance Policy, 2080. It is also said that this policy will be a guideline for the development, expansion and promotion of the insurance sector by the Insurance Authority. It has been mentioned in the policy that the overall evaluation of the policy will be carried out within five years of its implementation.

The Authority has stated in the National Insurance Policy published by the Authority that the policy will be reformed, amended and reviewed on the basis of the results obtained from the evaluation, the experience gained in terms of policy implementation and the relevance, appropriateness and overall effectiveness of the policy.

Insurance charges for terrorism risk The authority has decided to give the funds related to terrorism risk bearing to Nepal Reinsurance Company in the year 2080. By issuing instructions in the name of all insurance companies, Nepal Reinsurance Company has been asked to give the responsibility of terrorism risk bearing fund.

If the former Contingency Insurance Fund, established in accordance with the Contingency Insurance Fund Operation Regulations 2060 issued by the Government of Nepal in 2060, is doing the work of managing the claims of non-life insurance companies’ risk group RMDST, arranging reinsurance and paying other related insurance risks, the right to the insurance fund.

According to the decision of the Government of Nepal in the year 2071, the rights, assets and liabilities will be transferred to the Nepal Reinsurance Company, and the non-life insurance companies are requested by the authority to provide the total business under the risk group of the non-life insurance companies that the fund has been receiving and managing to the Nepal Reinsurance Company. Instructions have been given.

Insurance regulations are tanging :

Nepal Insurance Authority has prepared Insurance Regulations 2080. However, even after years have passed, the general insured have not received the insurance regulations. The Insurance Regulation 2080, which was prepared secretly amid controversy, is currently storing in the Ministry of Finance.

Concerned parties have viewed the draft with suspicion as there is no expert and competent person in the insurance authority. There is a shortage of skilled manpower who can draft insurance regulations in the insurance authority. The guidelines made by the authority have been in controversy time and time again.

Insurance services through a total of 37 insurance companies :

Currently, there are 37 insurance companies in Nepal. A total of 37 insurance companies including 14 life insurance companies, 14 non-life insurance companies, two reinsurance companies and 7 micro insurance companies are operating under regulation.

Micro insurance company starting insurance business:

In the year 2080, the authority granted permission to various micro insurance companies to do insurance business. With the aim of providing access to insurance with Nepalese citizens in a simple and easy way, the Insurance Authority has granted business permission to micro insurance companies. According to which, there are four small life insurance companies and four small non-life insurance companies. Most of these small insurance companies have already started business.

Online complaint facility :

The insurance authority has resumed the system of sending insurance complaints online. With Nepal Insurance Authority resuming the provision of making insurance complaints online, the applicant does not have to go to the complaint branch.

According to the Insurance Authority, to send any complaint related to the insurance sector, the applicant should submit the applicant’s full name, address, relevant number, email address, contact number, subject of the complaint, name of the insurer or related party, and related documents and complaints.

Online Exam Facility of Insurance Agent :

In order to operate the insurance business in a more robust and orderly manner, the Authority has advanced the process of granting licenses to agents only after conducting an online examination. Currently, various provinces are also conducting online exams for agents.

Premium IPO in controversy, being investigated for corruption

For the first time in the history of Nepal Insurance Authority, an investigation is being conducted in the policy corruption scandal. Currently, the Commission for Investigation of Abuse of Authority is investigating the corruption related to the decision to give the IPO at a premium price. There is a possibility that the insurance authority’s chairman, director and employees who signed the documents will also be involved in the scandal.

The Insurance Authority had allowed four life insurance companies to issue IPOs even at a premium price.

An initiative to prevent black money laundering in the insurance sector

Nepal Insurance Authority has started to show proactivity to prevent black money laundering in the insurance sector. The year 2080 can be considered as the year when many programs and activities related to money laundering were conducted and more awareness was raised about money laundering. Asset laundering has been accelerated by appointing a focal person with the Prime Minister’s Office and the Anti-Money Laundering Department.

The National Insurance Institute with a history of 54 years has been abolished

In the year 2080, the National Insurance Institute, which had provided life insurance services for 54 years in the history of Nepal, was abolished and the National Life Insurance Company was established. In the New Insurance Act 2079, the National Insurance Institute Act was repealed and established as a new company.

Overall, the year 2080 has been positive and happy for the insurance sector. Even though the Nepal Securities Board faced fierce controversy and criticism, the insurance sector did not face much criticism in 2080 compared to 2079.