Insurance Authority Chairperson Pledges to Expedite Claim Settlements

Kathmandu. Nepal Insurance Authority Chairperson Chandrakala Poudel has expressed commitment to bring the insurance claim settlement process within the legal timeframe of 6 months. Responding to queries from members of parliament in a meeting of the Finance Committee of the Federal Parliament on Tuesday, she stated that old claims would be resolved and the settlement process would be expedited by the upcoming Dashain. According to Chairperson Poudel, out of 600 to 650 cases pending until last Magh, 276 cases have been resolved in the last four months (Chaitra-Asar). To address issues in insurance claims, the authority has deployed a separate team under the concept of a 'war room'. Additionally, she informed that a special mechanism has been created through the website and email to listen to public grievances. The authority claims to have increased on-site and off-site inspections to enhance its regulatory role. Poudel stated that 78 inspections have been completed since Magh, and companies with deficiencies have faced actions such as suspension of business, revocation, and other departmental proceedings. However, she admitted to some challenges in managing manpower and regional offices due to the authority still operating with the old structure of the Insurance Committee. Clarifying the issue of health insurance raised by MPs, she informed that it does not fall under the authority's jurisdiction. The health insurance program is operated by the Nepal government through the Health Insurance Board, so the authority has no role in it. She presented statistics showing that insurance penetration has reached 51 percent, including term insurance for those going for foreign employment, and stated that a detailed report would be submitted. The authority claims that it is undertaking policy reforms to address issues such as potential money laundering in the insurance business, low coverage in agriculture and livestock insurance, and problems arising when insurance policies are surrendered. The authority has also committed to submitting a detailed written report to the Finance Committee within the next 10 days, covering all issues and statistics raised in the meeting. Speaking at the meeting, she said, 'We have accelerated claim settlements.' She added, 'We are resolving cases up to Bhadra, 2082, sequentially based on the first-in, first-out method.' The shortage of actuaries required in the insurance sector is being addressed through collaboration with Tribhuvan University for manpower production, and coordination is underway with the 'Actuary Society of Nepal'. Furthermore, Chairperson Poudel mentioned that the process of moving some segments to non-tariff to create a competitive environment in insurance premium determination has begun and will be expanded based on international practices.