Kathmandu: The Insurance Board(IB) is preparing to issue operating license for new life and non-life micro-insurance companies. As per the Insurance Act a single company is not allowed to sale both life and non-life products, so separate license will be issued.
After the enforcement of Insurance Act 2049,the life and non life business of Rastriya Beema Sansthan separated and Rastriya Beema Company was born to operate the non-life business of the Sansthan.
Similarly, National Life and General Insurance Company was separated into National Life and NLG Insurance.
According to the act, even in the case of micro insurance, both life and non-life business cannot be done by a single company. Those officials of the IB, “It would be possible to make arrangements for micro-insurance to do both types of business, but the law does not allow it.”
The Board is preparing to call application for operating license of micro insurance saying that the majority of Nepalis in Nepal are below the poverty line and they should be given access to insurance through specialized micro insurance companies.
Recently, a study was conducted on the situation of micro-insurance in Nepal under the coordination of IB Director Shushil Dev Subedi. The study concluded that access to micro insurance should be increased as access to micro insurance is only 10 percent in Nepal. Based on this study report, the IB is preparing to open a micro insurance license at the provincial level.