Kathmandu: The member companies of the Jiwan Bimak Sangh Nepal(JEBISAN) have demanded for open participation of all the life insurers to sale foreign employment insurance(FEI). JEBISAN is the union of life insurance companies of Nepal.
During the meeting of JEBISAN held on Wednesday evening, the participants emphasized on discontinuation of existing mechanism of FEI sales. The members have urged the executive committee to take take initiative for the arrangement of issuing FEI to all life insurance companies.
The chief executive officers of the participating insurance companies have complained that there were practical difficulties in risk assessment for the rest of the companies as only a limited number of companies are allowed to sell FEI.
In order to control fraud in FEI, the Insurance Board, regulatory authority, has made an arrangement to issue insurance policies to life insurance companies through insurance pool where only four insurers are selected at a time to sale FEI in rotation. Earlier, the Board had implemented the concept of insurance pool and implemented the rotation system amid that the life insurance companies had sold the insurance policy on the basis of counterfeit documents.
Stating that the possibility of fraud is less in recent times as technology led alternatives have become available to test whether the FEI policy is genuine or not, life insurance companies have demanded that any life insurer who wishes to sell the insurance policy should be allowed.
It was suggested that the Insurance Pool should be kept intact and the re-insurance should be continued even if the insurance policy is issued separately by all the companies, said a CEO who participated in the meeting.
FEI is currently being operated through the Insurance Pool. Four insurance companies including, have been selling insurance policies at a time on the bridge where 17 insurance companies are affiliated. The insurance premium received by the four companies from the sale of FEI is distributed among all the member life insurance companies on the basis of a pre-determined percentage.
