Corona Insurance Postponed As Risk Grows

June 5, 2020 | Investopaper

The insurance policy brought to protect the risk of Covid-19 has been postponed. The insurance companies have stated that corona insurance has been suspended for some time since Friday as per the directive of the Insurance Board.

Within a week of the government announcing free corona insurance for employees and health workers through the budget, the Insurance Board has instructed companies not to issue such insurance policies. The Nepal Insurance Association, an association of chief executives of insurance companies, has given such instructions after the most of the insurance companies have taken insurance liability at the rate of 100 percent of the current paid-up capital.

Also Read: Best Non-Life Insurance Companies In Nepal

After the insurers’ association wrote a letter to the regulatory body on Thursday requesting to close such insurance policies, the board issued a notice on the same day and directed to postpone the sale of corona insurance policies. Sinces, the provisions in the budget should be included, on the other hand, the reinsurance should be done as there is more risk, so it has been postponed for now.

Corona insurance policy has two types of insurance, one lakh and 50 thousand. It can also be insured individually or collectively. For an insurance of one lakh rupees, a person has to pay a premium of one thousand rupees. But collectively insuring a home, family or office worker costs Rs 600 per person. By insuring Rs 50,000, one can insure at Rs 500 per person and collectively at Rs 300 per person. The claim is paid as soon as the corona infection is confirmed by the hospital.

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