Kathmandu: The Nepal Insurance Authority (Formerly known as Insurance Board) has decided to withdraw the business related to riots and terrorism provided to Nepal Reinsurance Company. On the day of the anniversary of Nepal Re, under the coordination of the Executive Director of Authority, Rajuraman Paudel, the officials of the Nepal Insurance Association and the chief executive officers of general insurers have decided to withdraw the re-insurance business provided to Nepal Re.
Executive Director Paudel made such a decision in the presence of the CEO of Himalayan Re. The meeting was attended by Association’s President Chunki Chhetri, Vice President Virendra Baidwar Chhetri, Chief Executive Officer of Himalaya Re Chandra Shekharan Ramamurthy, Executive Director Mukesh Kapur, CEO of Oriental Insurance Vinod Ghate, Keshav Prasad Dahal of Insurance Authority and others.
It has been decided that according to the circular dated Jestha 6, 2079 by the former Insurance Board, the amount for direct cession will be implemented only from July 17, 2022 and the disaster risk insurance will not be included under that direct cession. If Nepal Re rejects the decision the business will not be bound to be provided to the said Nepal Re.
It has been decided that the insurers will retain Rs. 30 million per insurance policy that will be under the terrorism risk group and out of the remaining risk, 60 percent to be retained by Nepal Re and 40 percent by Himalayan Re. Earlier Nepal Re was solely provided the business under terrorism and riot risk.
It has been decided that 50 percent reinsurance commission will be provided to general insurance companies and the maximum limit of the business will be Rs. 600 crore. Business beyond that limit will be optional for general insurance companies.