Kathmandu: The Insurance Board has directed all life insurance companies to revise their premium rate for micro term insurance.
By the influence of some life insurers, earlier the Board had done partiality in the premium rate of micro term insurance. It had allowed few life insurers for flat premium rate while others denied the same.Which restricted the fair competition among life insurance companies due the partiality of the regulatory authority.
Due to the partiality from the Board, most of the term policy has been concentrated to a handful of life insurers.
Now, after receiving complaints from other life insurers, the Board has directed all the life insurers to develop the tariff based on the mortality rate and age group of the insured.
From now on, they have been instructed to determine the insurance fee only after assessing it from the actuary as per the mortality rate prepared by the Board, said Rajuraman Poudel, executive director of the Board.
Lately, life insurance companies have been selling micro and term policies by entering into agreements with Microfinance Comapnies.
For this, the companies have to fix the premium rate according to the age in the term policy under microinsurance.
