Kathmandu. KATHMANDU: Nepal Insurance Authority (NEA) has forwarded the process to establish Insurance Protection Fund and Insurance Information Fund as per the provisions of the Insurance Act and Regulation.
Fiscal Year 2081 of the Authority. The third paragraph of the one-page long speech of Chairman Janak Raj Sharma included in the annual report of Fiscal Year 82 reads, “Necessary process has been forwarded for the establishment of Insured Interest Protection Fund, Insurance Development Fund and Insurance Information Center as provided in the Insurance Act, 2079. ’
The then chairman Madan Prasad Dahal, in a statement issued at the end of his term, had also included the working procedure related to operation of the Insurance Protection Fund, 2081, the work procedure related to the establishment and operation of the Insurance Development Fund, 2081 and the preparation of the draft among the achievements of his tenure.
The NRA officials do not have any certainty about when the draft of Dahal had already been prepared in Chaitra 2081 BS and the process was initiated in Kartik 2082.
Sharma held a discussion with the insurer after the Insurance Khabar published the news about the Insured Interest Protection Fund, which was included in the second strategic plan of the NEA but not implemented at all. The authority has not made any official information public about its progress since then.
Clause 150 of the Insurance Act states that an Insured Protection Fund shall be established and operated under the Authority for the protection of the insured and Section 151 provides for the protection of the interest of the citizens through insurance by extending the access of insurance to the citizens of the economically poor category.
Noise more, progress zero
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Issuing a letter on January 3, 2081, the NRA had asked the life insurer for details of the amount deposited in the unclaimed fund and the amount deposited in the fund as it could not be paid to the insured or his/her heirs for 10 years.
Clause 150 of the Insurance Act has a provision to establish and operate an Insured Interest Protection Fund under the Authority for the protection of the interest of the insured. NRA had formed a study committee in 2080 BS under the convenorship of the then executive director Raju Raman Poudel to establish the fund as per this provision.
In its second strategic plan, the authority had announced to establish the Insured Interest Protection Fund within 2024 and the Insurance Development Fund within 2025.
