Beema Samiti (Insurance Board, Government's Regulatory Authority)

Transcription

1 Beema Samiti (Insurance Board, Government's Regulatory Authority) MICROINSURANCE IN NEPAL BEEMA SAMITI BEEMA SAMITI (INSURANCE BOARD NEPAL)

2 Landscape Study Government role on financial inclusion and promotion of insurance Since last three years The Government of Nepal has emphasized on the development of Social Health Insurance, Micro Insurance, Agricultural Insurance and all these have been included in the budget of subsequent years. Accordingly, National Planning Commission has drafted Approach paper elaborating objectives, strategy and operating plan of insurance sector in 13th plan(fy 2013/ /16). The Government of Nepal has subsidised 50% of premium on Agriculture insurance since this year.

3 Landscape Study Insurance industry at a glance Ownership Nature of the company Total General Life Composite Government Owned Private Sector Foreign Joint Venture Total

4 F/Y Landscape Study Insurance Penetration Life (Nrs. In Crores) Non-Life (Nrs. In Crores) Total Premium Premium % of GDP 2012/ / / / /

5 Landscape Study Current situation of Agriculture insurance (9 months) Total sum insured Premium Govt. Subsidise amount 248 M 12.8 M 6.8 M

6 Introduction of MI Micro Insurance Directives drafted and submitted to the Board for the approval. Draft directive defined Micro Insurance as insurance services targeted to low income people. Low income people mean the people earning up to NRS 400 per day. Distribution channels are confined to community bases group like NGOs/INGOs, Self-Help Groups, Micro Finance Institutions, insurance Agents and others.

7 MI products, Premium and Commission S. No. Types of MI products Sum Assured NPR Premium in Percentage Commission in Percentage Min. Age at entry Max. age at entry 1 Domestic Micro insurance 200, % 15% Micro Health insurance 35, per family of max. 5 persons 4.0% 15% As per rules of insurer As per rules of insurer 3 Accidental Micro insurance 150, % 15% Livestock Micro insurance 150, % 15% Crop Micro insurance 50, (at cost) 5.0% 15% Term Micro life insurance 150, As per Age As specified As per rules of insurer As per rules of insurer 7 Endowment Micro life insurance 100, As per Age As specified As per rules of insurer As per rules of insurer

8 Some Features of product Designed to be appropriate to low income people. Coverage is simple and straight forward. Comparatively low premium. Different distribution channels. Easy claim settlement Process. Easy documentation process.

9 Reporting System Within 15 days after the end of every quarter, the insurer must submit issued policies, liabilities, risks, claims and other information to the Board.

10 Consumer Protection : Policy wordings with terms are approved by Board in uniformed manner. Premium/rates are fixed by board. Claim should be paid within the 7 days. Insured/Claimant can lodge complaints to the Insurance Board.

11 Challenges From policyholders perspective Negative attitude toward insurance, Lack of awareness and insurance knowledge as risk management tool. Irregular and seasonal income, Lack of customer friendly products.

12 From insurer perspective Lack of rural infrastructure of insurers, Re- insurance back up, Geographical inaccessibility, Informal protection schemes, Lack of claim handling processes.

13 Coordination with different units Co-ordination with Various concerned Ministries, stakeholders, Rural organizations, Bank and Insurance Offices, Micro finance companies etc. Regular awareness Program and Training, Seminars etc. Support and co-operation with GIZ. Effective periodical monitoring of implementation of MI Programme. Building Statistics for future review of terms and premiums.

14 Plan Literacy program Need based product design Effective delivery channel Implementation of MI directive Clients protection Interaction with different stockholders

15 Thanks