Kathmandu. Construction businessmen and renewal energy producers are protesting against the non-tariff insurance rate fixed by the Insurance Board(IB). The businessmen have threatened that they will be forced for agitation against the IB if the decision for non-tariff insurance is not withdrawn immediately.
The IB has fixed the rate for premium of non-tariff business amid the cut-throat competition among non-life insurers. The circular for the non-tariff premium rate was issued on September 22,2022. The IB is the regulatory authority for insurance industry of Nepal.
The Independent Power Producers Association of Nepal(IPPAN) had given ultimatum to the IB to withdraw the decision of non-tariff rate by January 1, 2023. But no progress has been witnessed between these two organization as the attempt of IPPAN to hold a meeting with the IB couldn’t be resulted.
Construction businessmen and promoters of hydropower companies have been agitating jointly in this regard. Despite the protests of the businessmen, the insurance companies have been saying that there is no justification for protesting.
The circular issued by the IB sets the rates for open engineering policies. However, they have been protesting against the provision saying that the provision has increased the cost for those who have won the contract through bidding before September 22 on the ground that the new tariff rate will make their project costlier with excess burden of insurance premium.