Kathmandu. KATHMANDU: The Nepal Insurance Authority (NEA) is to facilitate the policy to implement the provisions related to insurance brought by the government through the budget for the current fiscal year 2083/84. NEA has decided to prepare the necessary guidelines for the implementation of the government’s decision and plan related to the insurance sector announced in the budget as soon as possible.
The budget for the current fiscal year has made a provision that at least 20 percent of the insurance policy issued by the insurance companies should be from Nepal Reinsurance Company. Similarly, the budget has also included a plan to allocate a certain portion of the reinsurance to foreign reinsurance companies to reduce the risk. For the implementation of these provisions, the Nepal Insurance Authority will have to amend the reinsurance guidelines of the insurer.
In the interaction with the insurers, Executive Director of NEA Sushil Dev Subedi said that the policy facilitation and issue of directives would be done with priority for the implementation of the topics related to insurance included in the budget.
According to the budget statement, the group insurance fund of long-term insurance will be led and operated by Nepal Reinsurance Company. For the initial implementation of the project, the authority has asked the foreign employment temporary insurance pool being operated by Himalayan Reinsurance Company to hand over it to Nepal Reinsurance.
This is one of the guidelines that the Insurance Authority has amended time and again in a short period of time to support interest groups. The authority has also amended the investment directive of the insurer time and again in a short time to give feedback to certain interest groups.
Apart from this, the third party insured which has not been increasing for a long time is Rs. The authority will have to amend the policy guidelines related to third party risk to reach 10 lakhs. The Authority should take initiative to implement the provision of installing accident control devices in the vehicles in coordination with the Department of Roads in coordination with the third party insurance for the mandatory implementation of the provision of installing accident control devices in the vehicles.
Apart from this, policy guidelines should be issued and coordination with the bodies concerned to make insurance mandatory for accident, fatal disease, transportation and other insurance.
And, it is mentioned that insurance will be made mandatory while approving the design of building construction in urban areas. Now, the Insurance Authority will have to coordinate with the local level government for its implementation. Even if the federal government makes an announcement, the local level has to take a policy decision from the municipal council or village council for its implementation.
