Nepal Insurance Authority has Prepared Insurance Regulations 2080 And awaits for the Implementation in 2081

Kathmandu: The year 2080 B.S has ended where preparation of the insurance regulations has completed, whereas the approval by the Parliament is still remaining. Even though the Insurance Act, which was issued in 2079 B.S, is still in its third year, there are still many challenges in its implementation due to the lack of insurance regulations.

The National Insurance Policy passed by the Government of Nepal can be seen as a new achievement in the insurance sector. But the expertise says that the National Insurance Policy was also not successful in providing new reforms in solving the ongoing problems occurred in the insurance field as the government issued it without sufficient homework.

Amidst the extreme financial crisis in the country, insurance companies have managed to increase their insurance business. 2080 B.S can be considered as the year where the field of insurance has become somehow wider due to the increase in public awareness program conducted by the insurance companies regarding the importance of insurance.

As a whole, according to the information, the insurance sector up to the end of January 2080 B.S, had 44.70 percent of total Insurance coverage, including term insurance. Last year, total insurance coverage was 37.35 percent.

Similarly, it is seen that 40.23 percent of the total population is covered by insurance. In comparison with the last year upto Chaitra month data, the access of insurance had reached only 34.52 percent of total population.

According to the data till the end of the month of Falgun, 2080 B.S, Insurance sector covered 17.90 percent excluding term insurance, small insurance and foreign employment insurance, whereas the last year’s coverage was 15.02 percent.

Within 2080 B.S (Baisakh- Chaitra period of time), the Life insurance companies have earned the total insurance fee worth 146 billion 408 million 700 thousand Rupees by providing 13 million 807 thousand 249 life insurance policies.

Similarly, within the 2080 B.S (1 year period of time), Non- Life Insurance collected the total insurance fee of worth 36 billion 465 million 700 thousand Rupees by providing 1 million 59 thousand 386 insurance policies.

Currently, there are 37 insurance companies operating in Nepal. A total of 37 insurance companies including 14 life insurance companies, 14 non-life insurance companies, 2 re-insurance companies and 7 micro insurance companies are operating by providing different types of Insurance policies.