Page 43 - Insurance Times May 2019

Benefits The death benefit shall not be less than 105% of all the
premiums paid as on date of death. Premiums referred
a) Maturity Benefit: On the life assured surviving to the
end of the policy term, provided all due premiums above shall not include any taxes, extra amount
have been paid, "Sum Assured on Maturity" along with chargeable under the policy due to underwriting deci-
Loyalty Addition, if any, shall be payable. sion and rider premiums, if any.
Where "Sum Assured on Maturity" is equal to Basic
Sum Assured. Policy Loan
Loan can be availed during the policy term provided at least
b) Death benefit - On death of the Life Assured during the 3 full years' premiums have been paid and subject to the
policy term provided all due premiums have been paid:
terms and conditions as the Corporation may specify from
On death during first five years: "Sum Assured on time to time.
Death" shall be payable.
On death after completion of five policy years but be- The maximum loan as a percentage of surrender value shall
fore the date of maturity: "Sum Assured on Death" and be as under:
Loyalty Addition, if any, shall be payable.
F For inforce policies - upto 70%
Where "Sum Assured on Death" is defined as the high-
F For paid-up policies - upto 60%
est of :
F 10 times of annualised premium; or
The interest rate to be charged for policy loan and as ap-
F Sum Assured on Maturity as defined in 7(a) above plicable for entire term of the loan shall be determined at
or periodic intervals. Any loan outstanding along with inter-
F Absolute amount assured to be paid on death, i.e. est shall be recovered from the claim proceeds at the time
Basic Sum Assured. of exit.

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How competitive is pricing of products in Nepal and its Its total quantity, as we are doing for both life and non-life
effect on Reinsurance Premium? business.
In many products, there are tariff businesses. However, for
the cases of Engineering and Miscellaneous classes, the Do you have any footprint in other countries and any
pricing are found more competitive. Undercutting on tar- plans of expansion?
iff rates is a big issue in like us country. So profitability on Our primary requirement is IPO and enlistment of Stock as
underwriting is being a major problem. However, to avoid well as obtaining the Rating from reputed rating agency.
these circumstances, we are thinking to establish a bench- Then we can think of such strategies. we have already dis-
mark rates. Regulator also taking some initiations to estab- cuss about it with government of Nepal and regulating
lish credibility in insurance market. audhority.

How Insurers and Reinsurers are adopting technology
Any other development you would like to share.
for economy of scale, better customer service etc.
The government has already approved for the increase of
In the cases of higher exposures, which is required to place Capital and the Authorized Capital USD 150 Million. and the
the reinsurance in the International market, the Insurers Paid Up Capital USD 100 Million. 16% i.e., USD 16 million
have to follow the terms dictated by the reinsurers. For will be offer to the general public. Again, domestic market
other cases which can be absorbed by their treaties, they
is being growing at double digit for last five years and it may
utilized their own. continue for another five or more years. Our presence is
growing at satisfactorily level in international market too.
What was your business in current fiscal and your tar-
Regulator is working regularly to bring insurance market at
get for the next year? international practices. Some development pictures are in
2018/19 NRs. 3,830,354,162/- (Actual) the market now. So both insurance and reinsurance mar-
2019/20 NRs. 7,000,000,000/- (Target) ket has bright future in Nepal. T

The Insurance Times, May 2019 43