Kathmandu. The Nepal Insurance Authority (NIA) has made it mandatory for the insurers to re-insure at least 20 percent of the insured from the Nepal Reinsurance Company (Nepal Reinsurance).
The current fiscal year 2083 was brought on May 29. In the budget of 2084, it was made mandatory for the insurance companies of Nepal to re-insure at least 20 percent of the insured. The authority has implemented this provision by making the fifth amendment to the Insurer’s Reinsurance Directive, 2080.
The revised directive states, “Insurers operating in Nepal will have to re-insure at least 20 percent of the insured directly from the Nepal Reinsurance Company.” With this, it has been ensured that the government-owned reinsurance company will get at least 20 percent of the business from the insurers.
However, air insurance under direct share, health travel and trekking insurance will not be included under the insurance of riots and terrorism, and miscellaneous insurance.
Earlier, in the directive, the rate of direct share allocation was fixed by the insurer for reinsurance under treaty reinsurance to domestic reinsurers. Direct share allotment for FY 2083. There was a provision to be distributed up to FY 84. FY 2084. In FY 85, it was said to be reduced to zero.
