Businesses, industries to get one-third waiver on insurance premium during lockdown

KATHMANDU, Aug 8: Businesses and industries are likely to receive one-third of the waiver on the premium of insurance policies during the lockdown imposed by the government to combat the spread of coronavirus.

A meeting between the Beema Samiti, the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Confederation of Nepalese Industries and Nepal Insurers Association held on Friday agreed on providing a 35 percent waiver on the cost of insurance coverage of their businesses during the nearly four-month lockdown that was in place between March 24 and July 21.

Most of the businesses and industries get insurance coverage for their properties like buildings, plants, machinery, shops, factories, furniture and fixture for the financial protection against various risks like fire, earthquake, storm, flood, inundation, explosion, landslide, riot strike damage, malicious damage, sabotage and terrorism.

However, non-life insurance companies will be providing a waiver on the insurance premium only after Beema Samiti — the insurance regulatory authority — issues a circular to this effect.

“Business organizations have sought a waiver on insurance premiums they have to pay during the lockdown during a discussion held on Thursday. This is something that life insurance companies also seem to agree with,” Raju Raman Paudel, the Beema Samiti’s spokesperson, told Republica. “However, this is not a formal decision yet. This is subject to the decision of the advisory committee and the board,” said Poudel, adding that the circular for the waiver will be issued following the approval by a board meeting.

Once the circular is issued, insurance companies will either provide one-third waiver on insurance premiums or make adjustments while renewing the insurance policy, say business leaders.

In a tweet post, Shekhar Golchha, senior vice president of FNCCI, welcomed the plan to provide the waiver on insurance premiums for businesses for the lockdown period.

The private sector has been demanding a waiver on the premium citing that the insurers did not have to bear any risks during the lockdown that forced the closure of businesses and industries.

There are 20 non-life insurance companies in Nepal.

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