Morang Merchant’s Association Urges Reform in Non-Life Insurance Policies

Kathmandu – The Morang Merchant’s Association has called on Finance Minister Bishnu Prasad Paudel to address the high premium rates in Nepal’s non-life insurance sector and introduce measures to revitalize the nation’s economy.

In a memorandum submitted to the minister, the association highlighted the excessive tariffs in non-life insurance, which are reportedly 50% to 200% higher than those in countries like India. It argued that these inflated rates, along with mandatory insurance policies for negligible risks, have burdened businesses and increased the cost of Nepali products and consumables.

President Anupam Rathi and former President Nabin Rijal criticized the lack of scientific risk classification and transparency in premium calculations. They emphasized the need for clear guidelines, allowing policyholders to calculate premiums independently, and advocated for reinstating the previous 10% insurance commission rate.

The association also pointed out broader economic challenges, such as illegal cross-border trade, reliance on raw material imports, and irregular power supply to industries. These issues, it claimed, are hampering the industrial and commercial sectors, making Nepali products less competitive and imposing a significant burden on consumers.

To address these concerns, the association proposed lowering non-life insurance premiums to match regional standards, allowing optional insurance for specific risks, and adopting scientific risk classification methods. It further urged the government to curb illegal trade, ensure reliable power supply, manage foreign exchange reserves effectively, and implement policies to reduce production costs and promote exports.

The association stressed the urgency for government intervention, warning that without immediate reforms, Nepal’s industrial and commercial sectors would continue to face significant challenges.