Kathmandu: The Ministry of Finance has formed three member investigation committee to look into the issue of long pending Covid19 insurance claims.
A meeting held between the Ministry of Finance and the representative of the Insurance Board has formed a three-member investigation committee for the payment of Corona insurance claims. The other two members of the committee include Bhupal Baral, Chief of Revenue Division and Chakra Bahadur Budha, Chief of Budget Division. The committee is formed under the coordination of Ramesh Kumar KC, Chief of the Financial Management Division of the Ministry of Finance.
The committee will study the progress of Covid19 insurance claim payment, resource management and other issues and submit a report to the ministry. The Ministry of Finance will take further action based on the report.
The insurance board has already submitted a detail report to the ministry for the settlement of claim payment. It has suggested two different alternatives. The first option, claim payment of Public Servant by state-owned insurer Rastriya Beema Company since all the policies for the public servants were issued by the Company itself. Excluding the claims for public servant, the Government of Nepal should bear 50 percent, 10 percent by the Insurance Board and 10 percent by the state-owned Nepal Reinsurance Company and the remaining 30 percent could be paid by all non-life insurance companies in a proportional manner.
Similarly, in the second option, 55 percent of the total amount to be paid by the government, 12 percent by Nepal Reinsurance Company, 25 percent by all non-life insurance companies and 8 percent by the Insurance Board.
It has been more than two years since the non-life insurers sold Covid19 Insurance Policies under the guarantee of the Insurance Board and Ministry of Finance. However, 76.59 percent of the total claim amount or Rs. 11.43 billion is yet to be paid against the claim.