Will the Government release fund for long pending Covid19 claim?

Kathmandu. The Ministry of Finance of the Government of Nepal has agreed to release one billion rupees for the payment of Corona insurance claims. The Government of Nepal is yet to pay Rs. 11.43 billion under its liability.

The Insurance Board(IB) has been repeatedly requesting the Ministry of Finance to release the fund for claim settlement. Chairman of the IB, Surya Prasad Silwal informed that the government is ready to release Rs. 1 billion after repeated requests. According to Silwal, the MoF is expected to release the fund soon as the election code of conduct will come into force from the 3rd week of April.

Insurance companies have received claim Rs. 14.93 billion under the Covid19 insurance policy. Out of which, Rs. 3.5 billion has been paid. The payment was released including the contribution from insurance companies Rs. 1 billion, Nepal Reinsurance Company Rs. 1 billion, Rs. 500 million from the catastrophe fund of Insurance companies and Rs. 1.5 billion from the IB itself.
The IB, regulatory authority has submitted a proposal to the government to release Rs.11.93 billion fund for the settlement of pending claim.

As per the triparty agreement for Corona Insurance Fund, the payment excess to Rs.3.5 billion will be born by the Government itself. But immediately after the claim exceeded Rs.3.5 billion, the Government remained silent to fulfill its financial obligation for the insurance pool.

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