Kathmandu: Federal government’s poor capital expenditure has almost halved the size of ‘Contractor’s All Risk Insurance(CARI)’ premiums income for general insurers. The contribution of the CARI to the total business of the general insurers remained at 16.01 percent during the last month i.e. Mangsir 2079 while it was 32.54 percent in the month of Asar 2079.
By the month of Mangsir, the fifth month of the current FY 7980, general insurance companies have collected a total of Rs. 2.55 billion premiums from CARI business against the total insurance premiums of Rs.15.97 billion.
Further, the income of property insurance is on the rise as compared to the Asar end of last FY 7879. According to the data unveiled by the Nepal Insurance Authority, the contribution of property insurance to the total business of general insurance was 21.74 percent till Mangsir end of FY 7980. During Asar end of FY7879,the share of property insurance was only 16 percent.The 18 general insurance companies earned Rs. 3.47 billion by the month of November through property insurance.
Further, the restriction on import to curb the surge in trade deficit, the contribution of marine insurance has fallen to 0.06 percent in Mangsir as compared to 3.48 percent of Asar end. Contrary to that, the contribution of aviation insurance increased by Last year there was a decline in air insurance due to covid-19. This year, the market share of aviation insurance has reached 5.03 percent from 2.87 in the review period.
The share of motor insurance has increased to 34.30 percent in the total business volume amid the lowered size of CARI.The 18 general insurers have earned a total of Rs. 5.48 billion from motor insurance.