Corona Insurance In Nepal: Almost 18 Lakh People Insured

November 1, 2020 | Investopaper

The number of people taking corona insurance policies has gradually increased in Nepal. Until now, about 17.70 lakh people have taken out such insurance since the start of Corona insurance policy in Nepal. The Insurance Board of Nepal had directed to issue Corona insurance policy for the protection against the risk of Covid-19 in Baisakh 4. Insurance companies have started issuing this insurance policy since Baisakh 7.

Premium Collection From Corona Insurance

So far, non-life insurance companies have collected Rs 101.91 crores premiums for corona insurance scheme launched. The companies have issued 1,81,795 insurance policies and covered 17,70,926 lakh people. Twenty non-life insurance companies are selling such insurance policies.

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Since the current fiscal year, the government has provided free corona insurance to all civil servants. The Insurance Board has issued new criteria for Corona Insurance for the implementation of such provision. At present, there are around 0.5 million government employees including civil servants, Nepal Army, Armed Police Force, Nepal Police and teachers. The government will insure these employees for Rs 1 lakh each.

The arrangement of giving 50 percent subsidy in insurance fee to the citizens who have corona insurance has also been implemented. The government had announced in the budget to provide 50 percent subsidy on the annual fee of collective corona insurance up to Rs 1 lakh. The Insurance Boars has also directed the companies to implement this provision.

Claims From Corona Insurance

Until last week, the non-life insurance companies have received corona insurance claims worth Rs 128 crores from 13,353 corona infected patients . The companies have settled 1,441 claims worth 13.73 crores only. However, 11,912 claims worth Rs 114.27 crores have not been paid.

According to the Corona Insurance Criteria, the company must pay the claim within seven days of the submission of proof of infection with Covid-19. In case of death of the insured without payment of claim, payment has to be made to the desired person or legal claimant. As per the new criteria, recommendation of local body is required for payment. Earlier, the payment was made on the basis of a report that the corona tested positive in a government hospital. Later, the reports of private laboratories were also recognized by modifying the corona insurance criteria.

Those who have insured until Bhadra 28 will get payment of Rs 50,000 and Rs 1 lakh as per the old criteria. But in order to pay the claim, s/he will have to submit a positive PCR report, a local level recommendation and a discharge report if s/he has been treated in a hospital. Those taking policy after Bhadra 29 will receive only Rs 25,000 if they stay in isolation at home and up to Rs 75,000 if they are treated in a hospital.

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Corona Insurance Policy In Nepal

All non-life insurance companies affiliated with e-services have started this facility to insure Corona. This service has been started so that people infected with corona virus do not have financial problems. Under this insurance, customers can choose personal insurance or family insurance. Corona disease insurance policy issued by the Insurance Board can be purchased by a person from 3 months to 99 years of age.

One has to pay Rs 1,000 or Rs 500 to insure. After the issuance of Corona insurance policy, provision has been made to provide Rs. 100,000 to those who pay Rs. 1000 and Rs. 50,000 to those who pay Rs. 500 if infected by corona virus. If one wants to insure one’s family, one has to pay Rs 600 or Rs 300 per person. A family paying 600 rupees will get Rs 100,000 per person. Likewise, a family paying 300 rupees will get Rs 50,000 per person. [For Policies Before Bhadra 28, 2077]

Customers can take the benefits of this insurance plan for 12 months after the payment of premium. There will be a waiting period of 15 days after the payment of the insurance fee and if the corona virus is confirmed positive within 15 days, this insurance will not be applicable. After the 15-day waiting period, a person can claim for the sum insured as soon as the corona virus is confirmed positive.

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Risk Sharing Agreement For Corona Insurance In Nepal

As per the agreement, the insurance companies will pay the first 10,000 claims of Corona Insurance. After that, it has been agreed that Nepal Reinsurance Company will pay additional 10,000 claims and another 5,000 claims will be paid from the catastrophe fund of insurance companies. Every insurance company should keep a certain percentage of its profits in the catastrophe fund. Now the same fund will be used. After the mentioned 25,000, additional 10,000 claims will be paid by the Insurance Board. All liabilities (amounts) for payment of claims above that will be borne by the government.

Corona is also gaining traction as the risk is increasing and the risk can be secured by insuring at low cost. Among the non-life insurance companies in Nepal, Shikhar Insurance has issued the highest corona insurance policies. Likewise, National Insurance has collected lowest premium from the issue of corona insurance policy.

Many people are likely to be affected as the corona infection is spreading in Nepal at the community level. If someone in the family is infected, there will be problems in getting treatment. Even though the government provides free treatment at the hospital, insurance experts say that corona should be insured to manage other expenses.

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