Kathmandu: Beema Samiti has directed the non-life insurance companies to provide exemption in the insurance premium of the public vehicles for the period of prohibitory order.
The District Administration Offices(DAOs) imposed local level prohibitory order from 29 April 2021 onwards. And the movement of public transport vehicles were completely restricted till the 21 June 2021. Then onwards
Similarly, Samiti, the regulatory authority, has stated that the waiver for the lapse period will not be applicable in the case of vehicles that have received a claim during the current insurance period.
According to Samiti, one-third of the total annual insurance fee of public passenger vehicles will be waived for the risk of stagnation and the remaining two-thirds will be discounted in proportionate amount. Similarly, when calculating the total premium, third party passengers, employee insurance and risk group should also be calculated.
The regulator has instructed the companies to adjust the renewal insurance premium of public passenger car and to provide the certificate of discount amount at the request of the insured in case of renewal with the insurer elsewhere.