Kathmandu. Since the head office of big projects, construction companies and business organizations is concentrated in Bagmati province and in Kathmandu, the business of insurance related to the construction of physical infrastructure projects seems to be concentrated in this province.
According to the Nepal Insurance Authority, bagmati province accounts for about 85 percent of the engineering and contractors all risk (CAR) insurance premium.
Current fiscal year 2081. Of the Rs 6.06 billion collected by the non-life insurers till mid-April 2018, Rs 5.13 billion has been collected from Bagmati province. It is 84.72 percent.
According to the NRA, the collection of CAR insurance fees till mid-April of the current fiscal year has increased by 12 percent in Bagmati Province. On the contrary, lumbini province has recorded the highest reduction of 13 per cent in insurance premium collection.
The Koshi Province has moved up to the second position in terms of insurance premium collection in the first 10 months of the current fiscal year.
Bagmati province dominates the total insurance premium:
More than 65 percent of the total insurance premium of non-life insurers is collected from Bagmati Province. The non-life insurer collected Rs 35.86 billion till mid-April, while Bagmati collected Rs 24.15 billion.
The business of non-life insurers seems to be more concentrated in bagmati province due to the large number of central offices centered in Kathmandu, not only due to the high number of industries, economic activities and population.
Most of the insurance policies of motor and property insurance, which constitute a large part of the non-life insurance business, are issued from the office in Kathmandu under Bagmati Province. According to the NRA, in the first 10 months of the current fiscal year, 57 per cent of the motor insurance premium and 56 per cent of the property insurance premium have been collected by the non-life insurers through insurance policies issued from bagmati state.
Business covered by motor and property insurance:
According to the data published by nea, motor insurance accounts for 30 percent and property insurance 25 percent of the total collected insurance premium of non-life insurers. The combined amount of these two types of insurance accounts for 55 percent of the non-life insurance business.
Most of the motor insurance policies are issued from Kathmandu as the central office of the importer of motor vehicles, the central office of the bank investing loans for import and the central office of the buyer businessmen are concentrated in Kathmandu. Apart from this, property insurance is also issued more from Bagmati Province as the central office of banks, big business houses taking loans, etc. across the country is also in Kathmandu.
