Supporting the general perception that insurance is a risk-based business, two types of insurance business are prevalent in Nepal. In this context, even in the calamities, catastrophes, epidemics that have been faced at different times, natural or unnatural disasters, epidemics have been introduced with additional programs like reinsurance and micro insurance to make the entire business viable in the future and to make it easy to make the necessary policy formulation easy and through proper control. <\/p>\n
Current state<\/strong><\/span><\/p>\n Was everyone aware of the insurance of the damaged people and property, or did not have the ability to insure or was it done in full or partially? The questions keep coming up. <\/p>\n It is difficult to assess how sensitive the insurance sector is. It is a well-known fact that it is not only a business but also a kind of financial sector that is involved in the financial obligations to the state and assesses the potential risk of the available resources and means and makes it safe with proper mobilization and management. Therefore, the government is also involved in various sectors including life, non-life, reinsurance, banks and financial institutions, investors, production groups, as well as the sector to make the economy dynamic. It seems that the future of insurance is bright because of the inclusion of such a large sector. <\/p>\n The landslide of the avalanche in the Tibet region of China on August 26 and the resulting pond, rising water level and explosion have redefined the fact that disaster does not come at first sight by playing the drums and the havoc created by the unexpected increase in the flow of the Lhende River. The flood is probably a big disaster caused by the avalanche that has wreaked havoc in the country and has once again pushed Nepal into disaster. It is not that the country has not embraced the disaster of the same nature that occurred in the Lhende River about 13 months ago. We stopped remembering the lessons of the past. It was unfortunate for the country to get trapped in the river again without drying the wounds. The lessons of the past have left us in the shadow of the preparations, necessary exercises, resource mobilization, use of technology, etc. to face the disaster in the future. However, due to limited resources, the mobilization of security agencies and manpower, etc., the rescue work should be considered commendable, except for exceptions. It is the pride of Nepal. <\/p>\n The fact that this kind of disaster has caused immense loss of life and property in the Chinese and Upper Nepali territories in an instant, is clearly in front of us through various footages and videos. Even in such a situation, it is reported that the bodies of about 750 people have been collected by the government till 6:30 am on the 15th, about 2000 are missing and rescue is also going on. As the search and rescue operation continues, the number of people who are away from life in such a terrible situation is sure to increase further. <\/p>\n Insurance companies are ready to take risks and pay the claim for the risk. At this time, there will be a large claim for loss of life in the life business. Apart from this, it is certain that billions of rupees will be claimed in non-life companies (full details will come later). <\/p>\n On the one hand, there will be a lot of claims in accident insurance, medical insurance, property insurance (hydropower, personal, bank and related to it), etc. This will not only put pressure on the repayment process of the company, but on the other hand, there will be pressure on the claim in the reinsurance as well. This is going to have some impact on the risk bearing capacity of the company. Insurance is a means of giving confidence to the families, businesses, etc., who have been reduced to zero due to such losses. <\/p>\n No one has the freedom to regret and lament at this time. It seems that this is the time for companies to focus on claim payment and seize the right opportunity if the claim is not received. Therefore, not paying the claim on time is like losing the future market, so coordinate with the claimant at the time of the claim application, and take the initiative to provide the claim amount quickly. This will help in getting the market again in the future. Also, we have plenty of examples of families and businesses that have been damaged by insurance claims in the past being able to recover. This shows how much is related to the importance and support of insurance in disasters. <\/p>\n Although the government and the concerned agencies have been conducting various exercises of rescue, treatment, removal of materials from limited resources to minimize further damage in disasters like fire, flood, earthquake, etc., it has not been seen that they have learned the lessons of the past floods. This did not reflect the trust and hope in the insurance. According to the past history of the settlements on the banks of the river and the loss of life and property, it was seen that the present government did not follow the tradition of relocating the settlements from the river bank to a safe place. <\/p>\n The local bodies also continued to expand the settlements by giving permission to the settlements on the banks of the river as areas of revenue but were unable to relocate the unprotected settlements. At the same time, they could not understand the importance of insurance. Due to this, if the uninsured family or business is not insured, they will be forced to bear the full loss. Therefore, the local bodies should also be ready to create awareness and educate and implement the importance of insurance. <\/p>\n Although there is an area of contingency work by foreign NGOs in various disasters, none has come forward. Due to this, there is a situation in which the government is ready to take grants and give some to the government and then take more grants. In this situation, it seems that the proper role has not been played. <\/p>\n The role of the regulatory body is under increasing pressure at this time. From there, it should play a coordinating role in providing guidance on the calculation of compensation in a fair and accurate manner and providing life to most of the businesses that have died again by paying the claim quickly. This seems to be a relief to the untimely questions raised about the work of the regulatory body in the past. If the information or education of insurance could be taken not only to the growth of the business but also to the risky sector, it would have been possible to provide more relief to the insurance sector. <\/p>\n The government should also mobilize more manpower to heal the wounds by delivering the assistance received and commodities to the victims on time. It is necessary to make the necessary compensation available in cash or commodity to improve and ease the livelihood, to mobilize resources at a fast pace to compensate for the physical damage, to arrange the necessary shelter in a safe place and to make insurance mandatory. This will reduce the burden on the government’s resource management by compensating for the loss of insurance in case of any calamity in the future. <\/p>\n Conclusion<\/strong><\/span><\/p>\n Insurance provides compensation in case of loss. It provides a basis to run a life or business after the loss. If we can imbibe this good idea, then insurance will come as a good friend even in the face of sorrow, so if we can learn from the past havoc and make the statement that insurance is incompulsory, then we can make a radical change in the safety of not only business but also people’s lives. <\/p>\n The writer is a former executive director of Nepal Management Association (NEMA) and a former insurance worker. )<\/p>\n","protected":false},"excerpt":{"rendered":" Supporting the general perception that insurance is a risk-based business, two types of insurance business are prevalent in Nepal. In this context, even in the calamities, catastrophes, epidemics that have been faced at different times, natural or unnatural disasters, epidemics have been introduced with additional programs like reinsurance and micro insurance to make the entire […]<\/p>\n","protected":false},"author":5,"featured_media":313743,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45031,45156],"tags":[],"class_list":["post-313750","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banner-news-en","category-blog-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/313750","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=313750"}],"version-history":[{"count":1,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/313750\/revisions"}],"predecessor-version":[{"id":313751,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/313750\/revisions\/313751"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/313743"}],"wp:attachment":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=313750"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=313750"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=313750"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}