KATHMANDU, Nov 29: Nepali non-life insurance companies collected a premium of Rs 14.09 billion in the first four months of the current fiscal year, an 11 percent increase compared to the same period in FY 2023/24.
The records with the Nepal Insurance Authority (NIA) show that a total of 14 non-life insurers were able to secure Rs 1.36 billion more in premium collection in the review period this fiscal year. During mid-July and mid-November last year, the premium collection stood at Rs 12.73 billion.
The players of the sector sold 897,235 units of insurance policies to their clients in the review period this year, up from 888,874 units in the same period last year. A notable rise in property insurance, micro insurance and vehicles insurance was seen as the main cause behind the surge in the non-life insurance business.
2,787 electrical four-wheelers imported in four months of curre...
According to the NIA, the premium collection in property insurance jumped to Rs 3.84 billion from Rs 3.19 billion. Likewise, the amount surged to Rs 4.59 billion from Rs 4.24 billion in vehicle insurance, to Rs 268.35 million from Rs 24.14 million in micro insurance and to Rs 817.70 million from Rs 727.41 million in marine insurance of traded goods. During the period, aviation insurance, however, declined to Rs 664 million from Rs 735.74 million.
Among the individual insurers, Sagarmatha Lumbini Insurance led in terms of business growth. The company collected insurance premiums worth Rs 1.77 billion. Siddhartha Premier Insurance with a premium collection of Rs 1.46 billion was second in the row, followed by Shikhar Insurance with a premium collection of Rs 1.41 billion.
Meanwhile, the NIA has asked the non-life insurers to sell their insurance policies on agriculture and livestocks only by using the real time software developed by the regulator.
Citing misuse of the subsidies provided by the government in the segment, the NIA has launched the new software to sell farm insurance policies. Farm insurance business covers only around five percent of the total non-life insurance business in Nepal.
The government had been providing up to 80 percent subsidies in the premiums of insurance against all sizes of farm businesses since FY 2021/22. The government enforced a new working guideline in mid-October, curtailing the insurance premium subsidies for farms of a bigger scale, while keeping those for small farm businesses constant.
In the new rule, the government provides 80 percent premium subsidies in farm insurance of up to Rs 5 million. For insurance coverages between Rs 5 million and Rs 10 million, the premium subsidy is 65 percent while it is only 50 percent of the premium amount for insurance coverages of over Rs 10 million.
Nirmal Adhikari, director at the NIA, said the new rule in farm insurance subsidies is to streamline the possible misuse of the state’s financial resources by the big firms. It also aims to reduce the government’s excess financial burden, he added.
