Kathmandu: The non-life insurance companies have postponed the payment of Covid19 insurance claims after the failure of Ministry of Finance to provide fund. All non-life insurance companies have formally informed the Insurance Board and the Ministry of Finance that they cannot pay anymore Covid19 insurance claims.
The CEOs of all non-life insurers have jointly submitted a letter to the Board today stating that the claim of Covid19 cannot be continued anymore. The Nepal Insurance Association has sent the letter with the signatures of the CEOs of all 20 non-life insurance companies.
The decision will directly have impact on the unsolicited claims received by the Covid19 Insurance Pool.
Despite repeated discussions with the Government of Nepal and the Insurance Board, the payment was forced to be postponed due to no additional contribution from the government, said a Chief Executive Officer. He said that it was difficult to work after the government started issuing prohibitory orders and the insured started threatening the insurance company.
More than Rs. 9 billion has been claimed for Corona insurance. Even though the companies paid Rs 3.5 billion and Rs. 1 billion through the Covid19 claim pool. But the Government has not released the amount committed by it while announcing the Covid19 insurance.
Even though the company paid more than Rs. 1 billion in claims at its own risk, the government did not support them. The policy has a provision of claim of Rs. 50,000 and Rs. 100,000 based on the premium paid.
The government of Nepal and the Insurance Committee are planning to increase the access of insurance to 33 percent in Nepal, but the inability to pay the corona insurance claim is having a big impact on the insurance industry.