Kathmandu. The Insurance Board(IB) has started preparations to have full control over the collective insurance fund. The collective insurance funds or insurance risk sharing pool is set up by the life insurers or non-life insurers to provide financial support when any re-insurance support is not available for a particular risk coverage or a risky business.
Earlier, the IB had made a provision for providing approval for the establishment of a collective insurance fund or insurance pool at the request of the insurers. But with the recent first amendments to the Reinsurance Directives for Insurers 2078 unveil by the IB on Thursday, the IB has proposed that it can proactively form a collective insurance fund. The IB is the regulatory authority for the insurance sector of Nepal.
Apart from this, the IB has tried to secure unlimited rights regarding the operation, management, monitoring and distribution of the collective insurance fund by mentioning that other arrangements related to the fund will be as prescribed by the IB. The IB has made internal preparations to grab the fund against long pending outstanding claims of insurance companies. Few months ago, the higher authority of the IB had put forward the concept of Policyholder’s Protection Fund and informed that it is preparing to form the fund soaking the long stayed outstanding claims of the insurance companies.