Kathmandu: Beema Samiti has formed a four membe study committee to issue licenses for micro-insurance companies. The committee is headed by Dy Director Poonam Gyawali Shrestha and other members are CEO of Sagarmatha Insurance Company Chunki Chhetri and CEO of Citizen Life Insurance Poshak Raj Poudel.
Beema Samiti, the regulatory authority, has stated that the committee will study and prepare a report within 20 days. The committee will study the current challenges in the market and what needs to be done to expand the insurance business.
The committee has been directed to study the need for micro insurance and prepare a report. It will also study the need and potential of micro insurance in Nepal.
The committee was formed on 18 June and started functioning from Thursday. The deadline for thr study report submission is wiithin 20 days from 24 June.
Discussions have been going on for the past three years to run a micro insurance company in Nepal. There is talk that the regulatory authority is preparing to open the company at province level with 2 in each province. The jurisdiction of such a company will be within a particular state only.
Stating that there is a program to increase access to insurance in the budget of the coming fiscal year as well, Beema Samiti has been holding the view that access can be increased through micro insurance.
According to BS sources, the upcoming micro insurance companies will be allowed to insure only up to a certain limit of sum assured. The official said, “The upper limit of sum assured will be fixed upto Rs.10 lakh. They will be directed to serve in coordination with the local elected body. ”
