The Insurance Board (IB) has decided to permit micro-insurance under which insurance companies will be able to offer coverage of less than Rs 25,000.
The IB plans to issue a directive approving micro-insurance from the next fiscal year. The maximum amount for micro-insurance has been set at Rs 200,000.
Policy buyers will be able to obtain life insurance and accident insurance coverage under the plan. The upper limit for health insurance has been fixed at Rs 35,000.
IB Director Sriman Karki said they had been discussing providing coverage to crops, livestock and farm equipment under micro-insurance.
“However, we are yet to reach a conclusion as we have already introduced agro insurance to deal with these issues,” he added.
Insurers have been reluctant to provide micro-insurance due to the costs of operating small schemes.
And in a bid to reduce overheads, the IB has planned to allow insurance companies to work with local NGOs, community-based organisations and cooperatives and enlist them as agents.
“These local organisations will be allowed to sell insurance policies, collect premiums and settle claims up to a certain level,” said Karki.
“However, they cannot act as underwriter which means they will not be allowed to guarantee that they will buy unsold policies.”
Karki added that micro-insurance would give access to insurance coverage to the poorer segments of the population.
The IB has long been endeavouring to launch micro-insurance, but lack of policy has prevented it from doing so. A proposal to introduce micro-insurance has been sent to the Cabinet, but it’s been gathering dust there for 10 months.
“As the proposed regulation has been stuck in the Cabinet, we are preparing to introduce a directive for which we do not require its go-ahead,” said Karki.
Despite the tremendous efforts that have been made to promote micro-insurance, the IB itself is sceptical about the success of the programme. “A lot of promotional work will have to be done to ensure that lower-income people understand the importance of micro-insurance,” said Karki.
source: the kathmandu post,10 june 2014
Saturday 20 September 2014
RBS draws closer to split
Nepal’s insurance sector will see an addition to the existing number of insurance companies with the state-run insurer readying to register a separate company for its non-life business.
Rastriya Beema Sansthan (RBS) is preparing to apply for the registration of its non-life insurance company under the name Rastriya Beema Company Ltd at the Office of Company Registrar (OCR) by next week.
“We will apply at OCR for the registration of the new company as soon as we get the written approval from the two shareholders — Nepal Bank Ltd and Employees Provident Fund,” informed Administrator of RBS, Ram Bahadur Khadka.
Nepal Bank holds 11 per cent stake in the company’s existing non-life business and 16.7 per cent in life insurance business, while Employees Provident Fund owns 22.25 per cent in non-life business.
The state-run insurer had begun the process to split into separate life and non-life entities more than 18 years ago as per the Rastriya Beema Sansthan Act 1967 revision undertaken in 1995. Moreover, the amended Insurance Act — that governs insurance companies — also forbids any company to operate both life and non-life insurance businesses. The process to split the company according to the regulations had failed to materialise, despite repeated orders from the regulator, finance ministry and even the Cabinet.
This time, RBS began the process after the appointment of Khadka as its new administrator through open competition in early 2013. RBS board had finally submitted the proposal for separating the business to the Ministry of Finance on August 12, 2013. Finally, the Cabinet formed following the November election, approved the RBS split on May 2.
“Despite still being a single company, RBS had been maintaining the business separately for life and non-life part with two balance sheets and different ownership structure,” pointed out Khadka.
“So distribution of assets and liabilities and employee management won’t be complicated in case of the demerger,” he added.
The non-life spin off has decided to be named Rastriya Beema Company because the company wants to retain the brand name associated with it, informed Khadka.
The non-life company will have paid-up capital of Rs 350 million, according to Khadka. At the end of fiscal year 2005-06, the non-life entity’s
paid-up capital stood at Rs 230 million and the company is planning to capitalise on the undistributed dividend to add another Rs 120 million and meet the regulatory paid-up capital requirement of Rs 250 million.
The public has 12 per cent stake in the existing company’s non-life business. “In a similar manner, the remaining life insurance company’s paid-up capital — at Rs 130 million by the last audit — can be easily increased to Rs 500 million by capitalising on the dividend,” informed Khadka.
The state-owned insurer that had not conducted a proper audit of its balance sheets is undertaking an audit of the years between fiscal year 2006-07 and 2012-13. As RBS had not fulfilled the condition of splitting its business, the Insurance Board has not renewed its licence for more than a decade.
source: the himalayan times,21 may 2014
Rastriya Beema Sansthan (RBS) is preparing to apply for the registration of its non-life insurance company under the name Rastriya Beema Company Ltd at the Office of Company Registrar (OCR) by next week.
“We will apply at OCR for the registration of the new company as soon as we get the written approval from the two shareholders — Nepal Bank Ltd and Employees Provident Fund,” informed Administrator of RBS, Ram Bahadur Khadka.
Nepal Bank holds 11 per cent stake in the company’s existing non-life business and 16.7 per cent in life insurance business, while Employees Provident Fund owns 22.25 per cent in non-life business.
The state-run insurer had begun the process to split into separate life and non-life entities more than 18 years ago as per the Rastriya Beema Sansthan Act 1967 revision undertaken in 1995. Moreover, the amended Insurance Act — that governs insurance companies — also forbids any company to operate both life and non-life insurance businesses. The process to split the company according to the regulations had failed to materialise, despite repeated orders from the regulator, finance ministry and even the Cabinet.
This time, RBS began the process after the appointment of Khadka as its new administrator through open competition in early 2013. RBS board had finally submitted the proposal for separating the business to the Ministry of Finance on August 12, 2013. Finally, the Cabinet formed following the November election, approved the RBS split on May 2.
“Despite still being a single company, RBS had been maintaining the business separately for life and non-life part with two balance sheets and different ownership structure,” pointed out Khadka.
“So distribution of assets and liabilities and employee management won’t be complicated in case of the demerger,” he added.
The non-life spin off has decided to be named Rastriya Beema Company because the company wants to retain the brand name associated with it, informed Khadka.
The non-life company will have paid-up capital of Rs 350 million, according to Khadka. At the end of fiscal year 2005-06, the non-life entity’s
paid-up capital stood at Rs 230 million and the company is planning to capitalise on the undistributed dividend to add another Rs 120 million and meet the regulatory paid-up capital requirement of Rs 250 million.
The public has 12 per cent stake in the existing company’s non-life business. “In a similar manner, the remaining life insurance company’s paid-up capital — at Rs 130 million by the last audit — can be easily increased to Rs 500 million by capitalising on the dividend,” informed Khadka.
The state-owned insurer that had not conducted a proper audit of its balance sheets is undertaking an audit of the years between fiscal year 2006-07 and 2012-13. As RBS had not fulfilled the condition of splitting its business, the Insurance Board has not renewed its licence for more than a decade.
source: the himalayan times,21 may 2014
Insurance Board endorses pro-poor micro insurance policy
The Insurance Board (IB) on Thursday endorsed Micro-Insurance Directive 2014 aiming to meet the insurance needs of low income people and backward communities.
The directives cover similar policies on both life and non-life insurance.
IB Chairman Fatta Bahadur KC said the new directive aims to carter to the insurance needs of low income people by bearing the risks of low insurance amount. It covers the need of small time traders to health insurance of low income groups.
There are seven different types of the policies with maximum insurance amount of Rs 200,000. There are a total of seven micro-insurance policies covering household, accident, livestock and birds, crops, term life, and endowment.
“The directive was much needed as insurance companies have neglected the low economic people,” added KC. All the policies will be provided by the eight life insurance and 16 non-life insurance companies.
“A small time trader also can insure his business against fire and other possible damages to his property now,” said Shreeman Karki, director of the Insurance Board (IB). He said, “The government can provide subsidies on micro-insurance policy premiums through poverty reduction programs.”
Currently, the government pays 75 percent of the insurance premium on crops and livestock. KC also underlined that this scheme can be helpful in reducing poverty.
However, KC says there are also challenges reaching out to the people living in the far-flung areas as most of insurance companies are concentrated in cities and urban centers.
Insurance expert Nil Saru welcomed the directive. “It will also streamline the informal insurance businesses in the remote communities. However, the need is to facilitate and guide the insurance companies to extend their services to those areas,” added Saru.
According to estimates around 6 percent of the population has access to life insurance. Statistics says combined premium collection by all life and non life insurance companies was to the tune of Rs 13 billion in the fiscal year of 2011/12.
source: RUDRA PANGENI, republica,13 sept 2014
The directives cover similar policies on both life and non-life insurance.
IB Chairman Fatta Bahadur KC said the new directive aims to carter to the insurance needs of low income people by bearing the risks of low insurance amount. It covers the need of small time traders to health insurance of low income groups.
There are seven different types of the policies with maximum insurance amount of Rs 200,000. There are a total of seven micro-insurance policies covering household, accident, livestock and birds, crops, term life, and endowment.
“The directive was much needed as insurance companies have neglected the low economic people,” added KC. All the policies will be provided by the eight life insurance and 16 non-life insurance companies.
“A small time trader also can insure his business against fire and other possible damages to his property now,” said Shreeman Karki, director of the Insurance Board (IB). He said, “The government can provide subsidies on micro-insurance policy premiums through poverty reduction programs.”
Currently, the government pays 75 percent of the insurance premium on crops and livestock. KC also underlined that this scheme can be helpful in reducing poverty.
However, KC says there are also challenges reaching out to the people living in the far-flung areas as most of insurance companies are concentrated in cities and urban centers.
Insurance expert Nil Saru welcomed the directive. “It will also streamline the informal insurance businesses in the remote communities. However, the need is to facilitate and guide the insurance companies to extend their services to those areas,” added Saru.
According to estimates around 6 percent of the population has access to life insurance. Statistics says combined premium collection by all life and non life insurance companies was to the tune of Rs 13 billion in the fiscal year of 2011/12.
source: RUDRA PANGENI, republica,13 sept 2014
Govt forms panel to probe alleged irregularities at IB
The Ministry of Finance has started an investigation into possible irregularities at the Insurance Board (IB).
A minister-level decision on July 20 formed a probe committee under MoF Joint-secretary Nawaraj Bhandari, which has been mandated to investigate six issues, including the board’s budget allocation and programmes for fiscal years 2012-13 and 2013-14, and staff appointment over the period.
The panel has also been asked to probe alleged losses to the IB for depositing money in banks’ call accounts, and appointment of a chartered accountant and his qualification. Other issues to be probed include the appointment and firing of former executive director of IB Binod Aryal.
Aryal was first hired under KC’s initiative, but was later removed from his post on charge of violating the regulator’s code of conduct and hiding his disqualification.
The probe committee has been formed at a time when the official trade union at IB has been holding protests, demanding pay hike and investigation into possible losses to IB due to call account deposits. The union has also demanded an investigation into the appointment of the chartered accountant, questioning his qualification.
The union had been obstructing regular work at IB since July 17.
The Post made repeated attempts to contact KC over the matter at his mobile and home phones, but to no avail. However, a source close to KC claimed the union’s protests and the formation of the probe committee are targeted at removing KC from his post.
Hinting at “political motives” behind the protest and the subsequent formation of the probe committee, the source denied any charges of irregularities.
KC was first appointed by the Maoist-led government under Puspa Kamal Dahal, and his contract was later extended during the second Maoist-led government headed by Baburam Bhattarai.
Given this context, a source at the Finance Ministry said the investigation panel
could have been formed for political reasons.
“KC was also asked to resign during the Madhav Kumar Nepal-led government, but he refused and the government could not force him to do so,” said the source.
IB Spokesperson Raj Kumar Aryal, however, expressed ignorance over the formation of the committee. The panel is expected to submit its report to the ministry by the first week of August.
source: the kathmandu post,28 july 2014
A minister-level decision on July 20 formed a probe committee under MoF Joint-secretary Nawaraj Bhandari, which has been mandated to investigate six issues, including the board’s budget allocation and programmes for fiscal years 2012-13 and 2013-14, and staff appointment over the period.
The panel has also been asked to probe alleged losses to the IB for depositing money in banks’ call accounts, and appointment of a chartered accountant and his qualification. Other issues to be probed include the appointment and firing of former executive director of IB Binod Aryal.
Aryal was first hired under KC’s initiative, but was later removed from his post on charge of violating the regulator’s code of conduct and hiding his disqualification.
The probe committee has been formed at a time when the official trade union at IB has been holding protests, demanding pay hike and investigation into possible losses to IB due to call account deposits. The union has also demanded an investigation into the appointment of the chartered accountant, questioning his qualification.
The union had been obstructing regular work at IB since July 17.
The Post made repeated attempts to contact KC over the matter at his mobile and home phones, but to no avail. However, a source close to KC claimed the union’s protests and the formation of the probe committee are targeted at removing KC from his post.
Hinting at “political motives” behind the protest and the subsequent formation of the probe committee, the source denied any charges of irregularities.
KC was first appointed by the Maoist-led government under Puspa Kamal Dahal, and his contract was later extended during the second Maoist-led government headed by Baburam Bhattarai.
Given this context, a source at the Finance Ministry said the investigation panel
could have been formed for political reasons.
“KC was also asked to resign during the Madhav Kumar Nepal-led government, but he refused and the government could not force him to do so,” said the source.
IB Spokesperson Raj Kumar Aryal, however, expressed ignorance over the formation of the committee. The panel is expected to submit its report to the ministry by the first week of August.
source: the kathmandu post,28 july 2014
Insurance policies for Rs 150
New directive aims to raise access of marginalised and low-income groups to both life and non-life insurance products
People can now purchase insurance policies by paying an annual premium fee of as little as Rs 150, as the insurance sector regulator has introduced the long-awaited Micro Insurance Directive.
Insurance Board came up with the directive to raise access of marginalised and low-income groups to both life and non-life insurance products.
Among non-life micro-insurance products that insurers can float, accident micro-insurance product with coverage of up to Rs 150,000 can be fetched for as little as Rs 150. This means those who have paid annual premium fee of Rs 150 will be entitled to compensation of up to Rs 150,000 per year in case they get into accidents.
Similarly, household micro-insurance products with coverage of up to Rs 200,000 can be bought upon paying annual premium of up to Rs 500. Likewise, family health micro-insurance products, which provide coverage of up to Rs 35,000 for households of up to five members, can be purchased upon depositing annual premium of up to Rs 1,400.
“We hope these relatively cheaper products will provide some social security cover to the poor. This is expected to reduce financial burden on low-income groups, as they do not have to fret a lot even if they meet with an accident or fall sick,” a senior official of the Insurance Board said.
The insurance sector regulator has also allowed non-life insurers to float micro-insurance policies to cover crop, livestock and poultry farming. Livestock and poultry micro-insurance products that provide coverage of up to Rs 150,000, for instance, can be fetched for up to Rs 7,500, while crop insurance with coverage of up to Rs 50,000 can be purchased for up to Rs 2,500.
However, it is not yet known whether these micro-insurance products on crop, livestock and poultry will be eligible for 75 per cent subsidy extended by the government.
The government had offered 50 per cent subsidy on crop, livestock and poultry insurance policies in the last fiscal year. The subsidy was raised to 75 per cent of the premium amount this fiscal.
“Since the government policy does not mention whether this scheme also applies to micro-insurance policies, we have not been able to take a decision on the issue. We will clarify this matter soon,” the official said.
Among others, life insurance firms can introduce term life and endowment policies with coverage of up to Rs 150,000 and Rs 100,000, respectively.
75pc subsidy to be granted
KATHMANDU: The government has agreed to provide 75 per cent subsidy on premium cost of crop, livestock and poultry insurance policies that provide coverage of over Rs 10 million. Earlier, single individual and firm that bought insurance policies with coverage of over Rs 10 million were barred from enjoying the facility on subsidy. “We received a letter from Ministry of Agricultural Development (MoAD) on Tuesday which said subsidy should be granted to all types of crop, livestock and poultry insurance policies regardless of the coverage amount,” a senior Insurance Board official said. Meanwhile, MoAD has said that insurance policies on crop, livestock and poultry should cover ostrich farming. Earlier, ostrich farmers were not eligible for the subsidy, although such grants were extended other poultry farmers.
source: the himalayan times,17 sept 2014
People can now purchase insurance policies by paying an annual premium fee of as little as Rs 150, as the insurance sector regulator has introduced the long-awaited Micro Insurance Directive.
Insurance Board came up with the directive to raise access of marginalised and low-income groups to both life and non-life insurance products.
Among non-life micro-insurance products that insurers can float, accident micro-insurance product with coverage of up to Rs 150,000 can be fetched for as little as Rs 150. This means those who have paid annual premium fee of Rs 150 will be entitled to compensation of up to Rs 150,000 per year in case they get into accidents.
Similarly, household micro-insurance products with coverage of up to Rs 200,000 can be bought upon paying annual premium of up to Rs 500. Likewise, family health micro-insurance products, which provide coverage of up to Rs 35,000 for households of up to five members, can be purchased upon depositing annual premium of up to Rs 1,400.
“We hope these relatively cheaper products will provide some social security cover to the poor. This is expected to reduce financial burden on low-income groups, as they do not have to fret a lot even if they meet with an accident or fall sick,” a senior official of the Insurance Board said.
The insurance sector regulator has also allowed non-life insurers to float micro-insurance policies to cover crop, livestock and poultry farming. Livestock and poultry micro-insurance products that provide coverage of up to Rs 150,000, for instance, can be fetched for up to Rs 7,500, while crop insurance with coverage of up to Rs 50,000 can be purchased for up to Rs 2,500.
However, it is not yet known whether these micro-insurance products on crop, livestock and poultry will be eligible for 75 per cent subsidy extended by the government.
The government had offered 50 per cent subsidy on crop, livestock and poultry insurance policies in the last fiscal year. The subsidy was raised to 75 per cent of the premium amount this fiscal.
“Since the government policy does not mention whether this scheme also applies to micro-insurance policies, we have not been able to take a decision on the issue. We will clarify this matter soon,” the official said.
Among others, life insurance firms can introduce term life and endowment policies with coverage of up to Rs 150,000 and Rs 100,000, respectively.
75pc subsidy to be granted
KATHMANDU: The government has agreed to provide 75 per cent subsidy on premium cost of crop, livestock and poultry insurance policies that provide coverage of over Rs 10 million. Earlier, single individual and firm that bought insurance policies with coverage of over Rs 10 million were barred from enjoying the facility on subsidy. “We received a letter from Ministry of Agricultural Development (MoAD) on Tuesday which said subsidy should be granted to all types of crop, livestock and poultry insurance policies regardless of the coverage amount,” a senior Insurance Board official said. Meanwhile, MoAD has said that insurance policies on crop, livestock and poultry should cover ostrich farming. Earlier, ostrich farmers were not eligible for the subsidy, although such grants were extended other poultry farmers.
source: the himalayan times,17 sept 2014
Agents permitted to sell micro-insurance policies
Insurance companies can now sell their micro-insurance policies through agents and local organizations enabling them to reach a wider customer base, according to a Micro-Insurance Directive 2014 enforced by the Insurance Board (IB) last week.
Previously, there were no laws allowing insurers to sell insurance at the micro level. The IB said that the new directive would benefit the poor who had no access to insurance services.
The directive has also opened the door for insurers to work with NGOs, community-based organisations and cooperatives and enlist them as agents. “The insurers, based on the financial strength of the local organisations, can appoint them as agents to collect premiums as well as underwrite insurance policies for the poor,” said Shree Man Karki, director of the IB.
However, local organisations have been allowed to handle only a small portion of their business, he said. The regulator of the insurance sector said it had come up with the directive in a bid to extend micro-insurance facilities mainly to the poor.
The IB had planned to issue micro-insurance regulations last year, but its draft was dumped by the Cabinet. The directive was issued after the proposed regulation got nowhere, said Karki.
The new directive allows insurers to sell policies under seven different headings, five related to non-life and two related to life insurance.
Under household insurance at the micro level, insurers can sell policies with a maximum insurance coverage of Rs 200,000. The upper limit for health insurance has been fixed at Rs 35,000 for a family of five. Likewise, the limit for accident and livestock insurance has been fixed at Rs 150,000 each. The maximum crop insurance amount has been fixed at Rs 50,000.
The directive has also allowed insurers to sell term-life and endowment insurance policies worth Rs 150,000 and Rs 100,000 respectively. According to Karki, term-life and endowment insurance policies cover death due to accident or natural causes. “However, it does not cover suicide cases,” he added.
The IB’s step is expected to benefit the poor in particular by bringing them under the insurance net. “Due to the provision, people with low incomes can be secured against possible damage to their small business, health and fixed property besides agricultural products,” said Karki.
The government already provides a 75 percent subsidy on insurance premiums for crops and livestock. Karki said they were mulling extending the subsidy to the non-agricultural segment of micro-insurance too.
source: the kathmandu post,19 sept 2014
Previously, there were no laws allowing insurers to sell insurance at the micro level. The IB said that the new directive would benefit the poor who had no access to insurance services.
The directive has also opened the door for insurers to work with NGOs, community-based organisations and cooperatives and enlist them as agents. “The insurers, based on the financial strength of the local organisations, can appoint them as agents to collect premiums as well as underwrite insurance policies for the poor,” said Shree Man Karki, director of the IB.
However, local organisations have been allowed to handle only a small portion of their business, he said. The regulator of the insurance sector said it had come up with the directive in a bid to extend micro-insurance facilities mainly to the poor.
The IB had planned to issue micro-insurance regulations last year, but its draft was dumped by the Cabinet. The directive was issued after the proposed regulation got nowhere, said Karki.
The new directive allows insurers to sell policies under seven different headings, five related to non-life and two related to life insurance.
Under household insurance at the micro level, insurers can sell policies with a maximum insurance coverage of Rs 200,000. The upper limit for health insurance has been fixed at Rs 35,000 for a family of five. Likewise, the limit for accident and livestock insurance has been fixed at Rs 150,000 each. The maximum crop insurance amount has been fixed at Rs 50,000.
The directive has also allowed insurers to sell term-life and endowment insurance policies worth Rs 150,000 and Rs 100,000 respectively. According to Karki, term-life and endowment insurance policies cover death due to accident or natural causes. “However, it does not cover suicide cases,” he added.
The IB’s step is expected to benefit the poor in particular by bringing them under the insurance net. “Due to the provision, people with low incomes can be secured against possible damage to their small business, health and fixed property besides agricultural products,” said Karki.
The government already provides a 75 percent subsidy on insurance premiums for crops and livestock. Karki said they were mulling extending the subsidy to the non-agricultural segment of micro-insurance too.
source: the kathmandu post,19 sept 2014
Body OF Celebraties Insured In Millions Price
All Those Assest that Have Millions and Trillions of Values Can be insured.
In the same way,Hollowood Celebraties With Unique Assets Has Insured their Body's Valueable Parts in Millions.List of Top 20 Celebraties who did Insured are:-
1.Bette Davis
Insured Body Part :Waist
Insurance :$28,000
2.Jimmy Durante
Insured Body Part :Nose
Insurance :$ 50,000
3.Dolly Parton
Bosom
Insurance
http://www.businessinsider.com/20-celebrities-who-insured-their-bodies-for-millions-2012-3?op=1
In the same way,Hollowood Celebraties With Unique Assets Has Insured their Body's Valueable Parts in Millions.List of Top 20 Celebraties who did Insured are:-
1.Bette Davis
Insured Body Part :Waist
Insurance :$28,000
2.Jimmy Durante
Insured Body Part :Nose
Insurance :$ 50,000
3.Dolly Parton
Bosom
Insurance
http://www.businessinsider.com/20-celebrities-who-insured-their-bodies-for-millions-2012-3?op=1
Subscribe to:
Posts (Atom)