Kathmandu. The Independent Power Producers Association of Nepal (IPPAN) has urged the Nepal Insurance Authority (NEA) to implement the agreement reached with the Nepal Insurance Association regarding deterrentification of insurance of hydropower projects.
An IPPAN delegation led by Ippan Chairman Ganesh Karki congratulated sharad Ojha, the newly appointed chairman of the Insurance Authority, on Tuesday and urged him to implement the agreement on deterrif. Chairman Karki also urged the NEA to make arrangements for payment of claims along with interest if the claim payment is delayed as there is no insurance for the hydropower project, bargaining at the last minute during renewal and taking six months to one year to get the claim payment.
According to Karki, the delay in payment of claims of other companies does not make much difference, but those who wait for the reconstruction of the hydropower project by paying the claim of the hydropower project are also wasted for one year. Due to the delay in payment of claims, the insurance company sends the surveyor late, sends people who do not understand hydropower, and such surveyors have to wait for years to get the payment if the report is delayed.
The ‘Minimum Premium Guidelines 2078’ issued for non-life insurance companies has increased the premium of hydropower projects by up to 500 percent. The then chairman of the NRA, Surya Prasad Silwal, had informed the NRA that it would be valid if the insurance company and the promoter company agreed on the directive. But the AUTHORITY has not been able to proceed with any process in this regard. IPPAN, however, insisted that 2-4 projects have been damaged due to floods and landslides, but many projects should go to deterrif as they are safe.
IPPAN Vice President Uttam Vlon said that Nepali reinsurance companies are seeking a certain percentage share of other insurance, but at the time of reinsurance of hydropower insurance, the ‘right of refugee’ facility should be removed. He said the NRA should take initiative to solve the problem as big reinsurance companies in the international market have also raised questions as to why nepal’s reinsurance companies did not re-insure Nepali hydropower.
A project that has never been claimed used to pay a premium of Rs 1.7 million annually has now gone up to Rs 5.7 million. According to Vlon, the premium of other projects has increased by 500 percent.
IPPAN Working Committee member Mithun Poudel said that earlier surveyors were mechanical engineers and they were only vehicle specialists, so there was a problem in assessing the damage of hydropower projects. For this, the AUTHORITY should also classify the surveyors, he added.
Sharad Ojha, chairman of insurance authority, said that on the one hand, hydropower entrepreneurs are facing problems due to the increase in premium by 250 to 500 percent, but on the other hand, they will talk only after studying why the reinsurance companies did not see profit despite such an expensive premium. He said that both promoters and insurance companies have benefited from deterrifying in the US, but after failing in India, the maximum rate has been left in the risk base by fixing the minimum rate. He said that a study should be done on what can be done in Nepal as well.
Ojha said that the energy sector should be insured as it is a priority sector of the government.
Although the policy holder has the right to get the claim according to the loss after insurance, there is a problem due to not buying the right policy. Ojha stressed that the company should also appoint an underwriter to see what kind of policy it is buying while buying the policy by paying a premium of Rs 10 million. NeA Executive Director Sushil Dev Subedi said that a hydro insurance bridge could be constructed as there was no possibility of a separate company being successful. He said that the bridge will also include not giving business to only one company in a corridor.
Subedi said that there is a provision in the Insurance Authority’s Act that the survey report comes late and if it is too late, it will also be implemented soon as it has not been implemented.
Chairman Karki, Vice President Bhlon, General Secretary Balram Khatiwada, Secretary Bharat Nepal, Working Committee Member Mithun Poudel and Chief Executive Officer Bhim Gautam were present on the occasion.
