Insurers Receive Threats from Contractors to Accept Engineering Insurance at Cheap Premium

Kathmandu: Construction businessmen and energy producers have been threatening the employees of insurance companies to accept their proposal for insurance at the lowest tariff. The insurance companies have denied to accept the proposals from the construction business organization from insuring almost free.

Contractor Association and Independent Energy Producers’ Association have been protesting against the Insurance Board’s decision for the minimum rate for non-tariff insurance on 22 September. Protesting businessmen demanding the repeal of the Minimum Rate Directives have been threatening the employees of insurance companies.

The same group has been demanding the repeal of the Non-Tariff Insurance Directive. They had gone on a hunger strike in the Board last month to protest. The Board formed a Task Force to study their demands. In the meeting of Task Force, the construction businessmen argued without any basis and took the stand that the Directive of Non-Tariff Rate should be repealed at any cost.

Ashok Kumar Khadka, general secretary of Nepal Insurers Association(NIA), says, ”There is no possibilities of re-insurance without raising the fee. But before the construction professionals can say that it has become expensive, one has to look at its technical aspects too.”

He further admitted that, “After the devastating earthquake, more claims are received, so the reinsurance companies have started making the rates more expensive.”

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