Kathmandu. The Nepal Insurance Authority (NIA) has prepared a draft directive on engineering insurance.
The Authority has made it clear that this directive is being brought with the objective of making the insurance related to construction projects and infrastructure development more systematic, transparent and effective, working uniformly in engineering insurance policies and protecting the interests of the insured. The Authority has requested the concerned bodies to submit the draft of this directive to the insurance section of the Authority within 7 days.
Under this directive, the proposer will have to submit the proposal form to the non-life insurer for engineering insurance. The insurer will have to confirm whether the proposal form has been filled completely or not. The proposal draft states that for the insurer who is more or less than the prescribed limit, the insurer will have to compulsorily prepare a risk assessment report by conducting an on-site inspection of the insurer.
While proposing the insurance, the proposer has to submit the documents related to the insurance provisions in the agreement document to the insurer.
The proposal draft states that the insurer should issue the insurance policy after assessing the risk on the basis of the proposal form, risk assessment report and other necessary details. The insurer will have to give a copy to the insured after issuing the policy. The insured will have to keep the proof obtained. While issuing the insurance policy, additional risk cover, conditions and restrictions should be included as per the requirement.
Similarly, in the draft, it has been proposed that the insurance policy should be submitted to the Insurance Authority for approval if any provision has to be issued with any provision in addition to the additional risk, terms and conditions. The Authority will give approval if it deems it appropriate.
The insurer will have to issue an insurance policy by ascertaining whether or not the insured will cover the risk of rioting and terrorism. If the insured is to cover the risk of rioting and terrorism, the insurer will have to issue the insurance policy by charging additional insurance premium.
In the case of contract insurance under the project, a provision has been proposed to issue confirmation by charging additional premium in addition to the mutual understanding of the insurer and the insured.
Term of Insurance
- , the insurance policy has to be issued in such a way that the term of the contract is equal to the term of the insurance policy.
- Short-term insurance policy should be issued in the case of a contract under the insured property or project with a period of less than one year.
- In the case of contracts under the project, the policy may be issued separately from the date of issue of the policy and the date of commencement of the risk.
- In the case of an insurance policy to be so issued, the risk commencement date as mentioned in the agreement document shall be maintained. The period of the contract under the project and the period for correction of errors shall be extended from the date of commencement of the insurance cover.
Depending on the nature of the property and project to be insured, the term of the policy may be more than one year, more than one year or less.TAG_OPEN_li_31
In the case of contracts under the project
