Kathmandu. Chairman of Nepal Insurance Authority Sharad Ojha has said that the authority is aware that the insurance claim payment should be made on time and has instructed the insurance companies to pay the appropriate claims within the stipulated time.
Addressing an insurance discussion and interaction programme organized by the Nepal Insurance Authority (NEA) in Biratnagar on Sunday with industry association Morang and Morang Chamber of Commerce and Industry, Chairman Ojha said action would be taken against the insurance companies and the insurance surveyors responsible for not paying the claims on time.
Chairman Ojha said, “Insurance companies pay claims, at present non-life insurance companies have paid 30 billion out of a total of 42 billion claims, the main reason for delay in claim payment is not doing proper risk assessment, insurers should be aware during risk assessment, there should be proper risk assessment.” ”
Clarifying that the minimum insurance rate has been fixed keeping in mind the international practice in Nepal as well, Chairman Ojha said, “It is not possible to remove the insurance system in the current situation where the insurance market has not matured in the country, but in the future, when the market expands and matures, we can go to deterrif.” The controlled insurance rate is not a syndicate, it is only a controlled system in practice all over the world. ”
Stating that it is a good practice to diversify the insurance rate and provide an alternative to the insured, Chairman Ojha said, “If we go to the risk-based pricing system, the insurance rate is likely to increase, the study related to insurance exemption is necessary, we will try to implement international good practices in Nepal as soon as possible.”
Chairman Ojha said that insurance companies have been instructed to operate the provincial offices effectively with authority.
Nand Kishore Rathi, president of Industry Association Morang, complained that premium rates are higher in Nepal compared to other countries, institutional discounts are different and insurance companies are working on their own.
Anupam Rathi, president of Morang Chamber of Commerce and Industry, said that there are problems in the insurance sector such as excessive increase in insurance premium and difficulty in getting claim payment.
The industrialists who participated in the program complained that the tariff rate has been implemented from the earlier non-tariff rate, which has now supported cartelization, there is a tendency among insurance companies to be flexible while selling insurance policies but do not care while paying claims, there is a syndicate between banks and insurance companies, and it is not possible to insure machine equipment.
Similarly, industrialists had suggested that the state offices of insurance companies should be given the right to settle claims up to Rs 10 million, insurance should be brought according to the needs of the insured, the Nepal Insurance Authority should make the regulation more effective keeping in mind the interests of the insured, and the performance system of the insurance company should be streamlined.
Responding to the queries raised on the occasion, Director of Nepal Insurance Authority Nirmal Adhikari said that the insurance rate has been revised based on the suggestions of industrialists and stakeholders.
On the occasion, Deputy Director of Nepal Insurance Authority Rajendra Maharjan made a presentation on the overall issues related to insurance.
Office-bearers of Morang Chamber of Commerce and Industry and Morang Chamber of Commerce and Industry and industrialists were present on the occasion.
