The Nepalese government is instituting a microinsurance fund that will “reinsure” products sold by insurers to “divert risk created by settlement of insurance claims” [1]. The Beema Samiti, the insurance regulatory authority of Nepal, is reportedly planning to contribute NPR 10 million (USD 119,000) to the fund and expects to collect NPR 15 million (USD 179,000) from member insurance companies. All non-life insurance companies will be eligible to be members. The fund will be formed under the chairmanship of a board member of the Beema Samiti,.
The Beema Samiti is also expected to release a directive instructing all nongovernmental organization (NGOs) and other firms operating microinsurance programs to work as agents of government-authorized insurance companies [2]. The activities of some of these organizations are being deemed illegal as Nepal’s Insurance Act requires companies involved in insurance business to obtain license from the Beema Samiti. Affiliation with insurance companies will make the insurance companies responsible for settling all claims as unlicensed providers may not have adequate capital to cushion ‘huge loses.”
By Nisha Koul, Research Associate
About Beema Samiti (Insurance Board of Nepal): Beema Samiti was established under the Insurance Act of 1992 and operates as an agency of the Nepalese Ministry of Finance. The Insurance Board’s mission is to “help develop the Nepalese economy and uplift the living standard of the Nepalese people through fair, equitable and sustainable development of the whole insurance sector.” It issues, renews and dismisses the licenses of insurance companies, insurance surveyors and insurance agents.
Sources and Additional Resources:
[1] Republica, “Draft regulation on Microinsurance Fund ready,” http://www.myrepublica.com/portal/index.php?action=news_details&news_id=38285
[2] Republica, “IB to bring NGOs conducting micro-insurance business under its ambit,” http://www.myrepublica.com/portal/index.php?action=news_details&news_id=38414
MicroCapital.org story, October 26, 2011, “MICROCAPITAL BRIEF: Nepalese Government Plans to Introduce Microinsurance Program in 10 Rural Districts,” https://www.microcapital.org/microcapital-brief-nepalese-government-plans-to-introduce-microinsurance-program-in-10-rural-districts/
MicroCapital.org story, March 8, 2011, “MICROCAPITAL BRIEF: Beema Samiti (Insurance Board) of Nepal Forms Panel to Define Microinsurance Products,” https://www.microcapital.org/microcapital-brief-beema-samiti-insurance-board-of-nepal-forms-panel-to-define-microinsurance-products/
MicroCapital Universe Profile: Beema Samiti, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Beema+Samiti+%28Insurance+Board%29
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
Similar Posts:
- MICROCAPITAL BRIEF: Jeevan Bikas, Pula, UNCDF Partner on Index Insurance for Farmers in Nepal
- MICROCAPITAL BRIEF: David Grimaud Named CEO of Palladium Group’s Bamboo Capital Partners
- MICROCAPITAL BRIEF: Activists Block Access to 3 Microfinance Institution Branches in Nepal, Accusing MFIs of Causing Over-indebtedness
- MICROFINANCE PAPER WRAP-UP: “Impact of Microcredit on Household Consumption and Assets in Nepal;” by Shalik Ram Pokhrel
- MICROCAPITAL BRIEF: Non-performing Loan (NPL) Ratios Up Among Microfinance Providers in Bangladesh
