Nepal Insurance Authority Hosts Stakeholder Dialogues on Engineering Insurance Challenges
Kathmandu — The Nepal Insurance Authority organized a high-level stakeholder consultation on Wednesday at its central office in Kupandol, bringing together representatives from non-life insurance companies, reinsurance firms, and the construction sector to address persistent challenges in engineering insurance.
The event was aimed at fostering dialogue and collecting practical suggestions from industry players to resolve recurring issues in engineering-related insurance policies, claims, and policy implementation.
Speaking at the program, Executive Director of the Authority, Sushildev Subedi, emphasized the need for coordinated action between regulators, insurance providers, and construction entrepreneurs. He noted that while most engineering insurance policies are drafted in Nepali, misunderstandings still arise due to limited comprehension of technical terms
Director of the Authority, Nirmal Adhikari, highlighted the growing concern over policy renewals for long-term construction contracts. He stressed that insurance products must align with the needs of the insured, with clarity and consistency across all policy documents.
Rabi Singh, President of the Federation of Contractors’ Association of Nepal (FCAN), underscored the importance of building public trust in insurance. Similarly, Nepal Insurance Association Chairman Birendra Baidwar emphasized transparent underwriting practices and better communication between insurers and policyholders. He added that smoother policy renewals for extended contracts are possible if domestic reinsurers offer adequate backing.
Construction entrepreneurs present at the discussion raised several practical concerns. They called for clear disclosure of all policy terms during purchase, immediate partial compensation based on survey reports, simplified policy language, and systematic updates on renewals and claim processes—ideally through digital platforms. Many also highlighted the need to address issues related to the Defects Liability Period (DLP) and policy accessibility.
Chief executives of non-life insurers echoed these sentiments, urging a shift in perception where insurance is viewed not as a legal burden but as a necessary safeguard. They reassured that insurance rates are being reviewed in line with global standards and evolving domestic needs.
The program witnessed active participation from the Nepal Insurers’ Association, heads of non-life and reinsurance companies, and officials of the FCAN.