- Rajendra Malla
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In the case of non-essential property, people in the private sector are increasing the scope of insurance day by day than in the past. In the case of property insurance, the government does not provide insurance. The government should also insure big physical infrastructure, houses and cars.
So far, no budget has been spent by the government on the idea that the small amount allocated for insurance will secure its future. This should be done as soon as possible. It will also benefit the country if it works according to international practice.
Since 2015, home insurance has increased due to earthquakes. Currently, more than 40 percent of the people in urban areas have home insurance. Insurance has not yet reached the rural areas. The builders of big buildings take loans from banks and get insurance from banks. Otherwise, there is a habit of not having insurance. However, since the property can be secured by paying a premium of Rs 4,000 annually for Rs 1 crore, insurance should be done and there should be awareness about it.
The Insurance Authority has been conducting insurance awareness programs from time to time. As a result, insurance is increasing more than in the past. Currently, the NRA has been conducting awareness programs at the state level as well. The awareness has not been as fast as it should have been. As an insurance company, I have suggested that it would be very effective to do the awareness program through FFOM.
It cannot be said that the insurance is stingy for awareness. Our way of working should be in line with international practice. But we’re a little more traditional. Outside, health, property and car are insured. In Nepal, all this is in the way that we do not do it as a necessity in the insurance sector. However, it is necessary to have insurance. Now there is talk of providing health insurance to everyone. If the government is given the responsibility to the insurance companies rather than the government, then the government’s revenue will be spent less and all the insured will also benefit. The authority is also working to promote and promote it in a regulatory capacity.
Insurance Authority and insurance companies are also actively expanding the market for the promotion and promotion of insurance business. The increase in business every year is an example of this. Perhaps, in the next few years, the general public will be fully aware of insurance.
Now it’s a matter of premium insurance. There is a rate. The new problem is that there are two reinsurance companies in Nepal. We insurance companies have to share 6-6 percent of the business with both of them. There used to be internal competition between the two companies, but now it is being divided without competition.
We non-life insurance companies have to go to the foreign reinsurance company that we do not want and the foreign reinsurance company that we do not want. Reinsurance has become expensive because of the business left by others. This is affecting the insured. That’s the main thing and the problem. Nepal’s reinsurance is creating problems as the premium is expensive as it is taking the business by choosing it.
Another thing is that there should be no problem with claim payment. Once someone is insured, the insurance companies have to pay. There is no confusion about this. In this, the insured should also provide the necessary documents on time while claiming insurance. Sometimes, the delay is due to the failure to send a claim paper.
We are the Non-Life Insurance Professionals Association of Insurance Companies. The association and the board have also been checking the watchlist to see whether the insured has received the money on time or not. We are also making payments on time. There should be no controversy on this.
In insurance, the insured has to get paid. But one of the problems is that of the surveyor. Since the same type of surveyor takes a lot of business and does not work on time, there is a method to give it to a few categories and then move on to another. The Insurance Authority is working for this.
Hydropower is a major insurance sector. It requires a large amount of money. If we can’t afford the risk, it goes to the international market. Outside reinsurance companies are reluctant to take up this hydropower project as most of the losses in this hydropower project will occur even during the rainy season. It’s a bit of an expensive situation.
In order to make it systematic, there was an internal competition to give equality to the two reinsurance companies in Nepal. We will give 20 percent in 6-6 days instead of 12 days. It wasn’t a problem. However, there was no selection and no other option. There are 2 internal companies that must compete.
Natural disasters occur every year. Land, hills, roads and roads are not insured. Apart from this, vehicles and goods are being insured.
Nepal’s reinsurance should stop selectively leaving the business. International reinsurers refuse to take over the abandoned business. Insurance is also a business. No one takes the business to bankrupt themselves. He looks at what’s good for himself. As a result, there will be no problem in the insurance of hydropower projects if the reinsurance company of Nepal does not keep the ‘selective business’ in Nepal and do not leave the rest.
Malla is the president of the Non-Life Insurance Entrepreneurs Association. )
