New Corona Insurance Standards Implemented
August 6, 2020 | Investopaper
The Insurance Board has introduced new standards to provide financial protection against risks posed by the corona virus. The board has formulated and implemented the criteria in the budget statement of the Fiscal Year 2077/78 BS with the consent of the Government of Nepal and the Ministry of Finance.
Corona insurance is sold through 20 insurance companies in Nepal licensed by the insurance board to provide financial security to the risk arising from corona. There are two types of insurance have been established under the Corona insurance policy, one lakh rupees and 50 thousand rupees. The board has stated that the insurance fee has been fixed at Rs 1,000 per person for an insurance policy with an insurance policy of Rs 100,000 and Rs 500 per person for an insurance policy of Rs 50,000. If all the members of the family living together are insured collectively, an insurance fee of Rs 600 per person for an insurance policy of Rs 100,000 and Rs 300 per person for an insurance policy of Rs 50,000 has been fixed.
Related: Corona Insurance In Nepal
The minimum condition for purchasing insurance policy is to be a Nepali citizen. If any Nepali citizen has returned to Nepal from India or a third country, s/he must stay in quarantine for 15 days and stay with his family for a total of 30 days. The board has stated that for group corona insurance, there should be a document certified by the concerned local level including self-declaration of the members of their single family and a document certified by the local level that the person or family who wants to purchase single or group corona insurance has resided in Nepal for last 30 days.
The claim can be made 15 days after the purchase of Corona insurance policy and if the PCR test from a body under the Ministry of Health is found to be infected with Corona virus. After that, the insurance company has to pay the claim to the insured within seven days of receiving the claim. The board has stated that in case of death of the insured without payment of the claim, the insured should pay the desired person or legal right holder.
Similarly, the Government of Nepal will provide 100 percent subsidy for the collective corona insurance of civil servants. As per the budget statement of the Government of Nepal for the current fiscal year, provision has been made to provide only 50 percent subsidy in the collective corona insurance done by the general public.
In order to get the grant for collective corona insurance, the insurer has to submit the documents related to the risk rating system as specified in the corona insurance standard 2077 issued by the insurance board. All the members of a single family should have self-declaration and documents with the name and age of the member of a single family should be certified by the concerned local level.
The Insurance Board has stated that such insurance fee will not be provided as a subsidy if the insurer is found to be insured against the mentioned procedure and criteria while insuring the group.
