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Micro Insurance Program Across the Nation in the Offing

  1 min 27 sec to read

July 16: Non-life insurance companies are preparing to start micro insurance program across the nation in collaboration with microfinance companies from mid-July. All 17 non-life insurance companies of Nepal have been providing micro insurance service separately. Now, they have decided to work hand-in-hand with the Microfinance Bankers Association and Nepal Insurers Association to make the program more effective. The program focuses on encouraging people of low income group to purchase insurance policy at a low premium rate.

Nepal Insurers Association’s Executive Director Dron Acharya informed that final preparations have been completed to start the program from mid-July. According to him, the first phase of program ill include promotion of the program among people of low income group through 37 institutions associated with Microfinance Bankers Association. The service can be expanded in the second phase to other microfinance companies which are not affiliated to the association, if they show interest.  

Under this program, Microfinance Bankers Association will first give training regarding micro insurance to the people involved in this program and they will then return to their respective companies and share the knowledge to the clients.

The non-life insurance companies along with a British aid agency, Sakcham Access to Finance, have set up a fund of Rs 80 million for the micro insurance program. The British agency has contributed Rs 40 million while the remaining amount was raised by the insurance companies of Nepal. The stakeholders have agreed to appoint Prudential Insurance Company as the manager of the fund for the first fiscal year of the programme. The fund manager will be changed every year, informed Nepal Insurers Association’s vice president and Prudential Insurance’s CEO B K Maharjan.

 

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