Sanchit Bajracharya. Lack of awareness is the main reason for not having property insurance in the context of Nepal. Awareness about this has not been spread among the public. Therefore, it is important for everyone to first understand what insurance is. Property insurance is all over the world. You should insure your property wisely.
We are established to provide insurance. Our job is to provide that insurance. The company does not want to leave without any insurance. But we didn’t want to leave. The doer should. Everyone has to bear their own risk in property insurance. It should be understood that the insurance is not for the company.
The person who insures is free from liability. Everyone should think about how they will not be harmed. The main reason is the lack of awareness about insurance.
Once a company is established, you are trying to figure out how to expand your business. To succeed in our objectives, we must insure, afford, and pay our liabilities. We have to run the company to save 2-4 paise from it, so we are working to raise insurance awareness according to our resources. Otherwise, how will the company run? Insurance awareness programs are being held and are being conducted. But this alone is not enough. There is no insurance in the society due to selfish thinking. It is said that it needs business rather than insurance. Now that there is competition in the market, they are defining it differently. Now the concerned authorities should work well.
The government should also include insurance in education. It should be included at the lower level, not at the university level. A university education may produce an established and skilled manpower for the company, but the business will not grow. If insurance and business are to grow, then insurance should be included in basic education. In the coming days, we should think differently to increase the scope of insurance.
The premium is determined by the reinsurance. We don’t have to set a premium for one. For a house worth Rs 10 million, the premium is around Rs 5,000, so it is not a big amount. Now, if you go out and have lunch, you should consider that it will cost more than that.
There is also a misconception in the society that they will not be paid. If there is a loss, you get paid for the insurance. Sometimes, it may be too late or money may run out due to a lack of procedure. This is because we don’t understand the reality. It is wrong to say that the premium is high and low. It is also important to understand that the person will determine his own risk and the premium will be determined on the basis of that.
It has been disputed as a problem of payment of claims. If someone has taken insurance here and does not get the claim payment, the regulatory body takes action. If the company does not pay the claim tomorrow, it will not be able to expand another business. How much is the benefit of not paying a claim today? What’s more, he can grow his business by collecting premiums. There are so many competitors that if one company does not insure, another company will be ready.
There is a lack of awareness and understanding about insurance in the country. The receiver seeks more, the giver seeks to give less. But no one wants to succeed in this. As a rule, everyone should stay here. The dispute has arisen because the receiver will not be able to take more than he wants. The rules of insurance had to be followed. The problem has surfaced as the market price does not pay the claim of Rs 10 million by insuring a house of Rs 50 lakh.
Since the hydropower project is in a risk-taking place, the companies are a little bit risky. The company has to reinsure after the insurance. Here, everyone is working for some profit. You can’t be insured at a low cost when you’re at risk. That’s what’s happening now.
Since it is a ‘risk factor’, the insurance rate will be evaluated accordingly. Risk projects are not only insured by one company, but it is shared and collected. Insurance companies don’t just look here.
The company that we reinsured also looks at. We are not satisfied with the results of the insurance by analyzing the risk. The fact that I can have insurance means that I bear the liability. The company may or may not insure at a rate charged by the insured. This insurance should not only be taken by me but also shared with others. Everyone’s reinsurance is different. The capabilities of these companies are not the same.
If my company can afford to take risks, it will. If not, those who can afford it are insured. If you can’t insure more or less than this, then you have to say it. That’s what’s happening right now. Companies that cannot pay liabilities are unable to pay claims while insuring them at low premiums. In this, the insured also has to understand the companies. The insured should look at the quality of the insurance company rather than the cheaper premium. It is important to understand that paying a high premium carries a risk.
After the insurance company takes the risk, it is sent to the reinsurance. If he accepts, it will be easier for the company. But if it is not accepted, the company will have problems. A single company cannot take the liability of billions. If the reinsurer does not take any risk, the insurance company will lose business. Insurance is about sharing risk.
Reinsurance should also take what we have taken in such a way that it does not reject it. Only if the fee is less than the prescribed fee, it will not be charged. However, if the insurance is as per the fee, then it should be taken. This reduces the problem of reinsurance in non-life insurance.
Bajracharya is the CEO of Prabhu Insurance. )
