FCAN Alleges Irregularities in Insurance Practices

Kathmandu – Federation of Contractor’s Associations of Nepal (FCAN), President Rabi Singh has raised concerns about irregular practices in Nepal’s insurance and reinsurance sectors. Speaking at a program held in Kathmandu to announce a protest, Singh alleged that reinsurance companies are not fostering competitive practices and are instead setting up predetermined insurance arrangements.

The FCAN has criticized what it views as the state’s neglect of the construction industry, which it says is grappling with numerous challenges. Singh warned that without timely intervention, the construction industry faces the risk of severe setbacks. To address these issues, the federation has called for the formation of a high-level commission that includes representatives from FCAN to work on resolving the sector’s pressing problems.

At the program, Singh highlighted specific concerns regarding the conduct of Nepali insurance and reinsurance companies. He noted that construction entrepreneurs are often left to choose insurance providers based on preferences, which undermines regulatory standards. He also claimed that insurance companies are not fully adhering to the rules set by the Nepal Insurance Authority, with some companies allegedly setting insurance premiums arbitrarily and disregarding provisions requiring loan values of 5 to 10 percent.

To push for reform, the FCAN has announced a protest program from January 16 to February 3. Singh emphasized that these protests aim to draw attention to the urgent need for transparency and fairness in the insurance and reinsurance sectors, as well as broader support for the construction industry.