Beema Samiti, the insurance regulatory authority of Nepal, recently has been mandated by the country’s finance ministry to identify 10 rural districts in which microinsurance programs will be implemented [1]. As reported in a MicroCapital story published March 8, a committee constituted of two Beema Samiti officials and one representative each from six insurance companies was established to identify microinsurance products that might best match the needs of the population. The committee reportedly has recommended an array of insurance products that include life, health, accident, crop and livestock policies. Insurance companies are also encouraged to insure small projects like water mills, wells, huts, furniture and grill workshops, tea shops, rickshaws and vending carts.
Mr Shekhar Kumar Aryal, the spokesperson for Beema Samiti, reportedly suggested that the sector may face challenges such as: lack of local distribution channels; absence of a livestock census to provide accurate data about breeds, life expectancy, diseases etc; and lack of interest from insurance companies that “fear losing money as a thorough risk analysis has not been conducted.” Beema Samiti is considering using existing microfinance groups to collect premiums in order to address the challenge of distribution.
By Nisha Koul, Research Associate
About Beema Samiti (Insurance Board of Nepal): Beema Samiti was established under the Insurance Act of 1992 and operates as an agency of the Nepalese Ministry of Finance. The Insurance Board’s mission is to “help develop the Nepalese economy and uplift the living standard of the Nepalese people through fair, equitable and sustainable development of the whole insurance sector.” It issues, renews and dismisses the licenses of insurance companies, insurance surveyors and insurance agents.
Sources and Additional Resources:
[1] Republica, “Govt pushes for microinsurance program,” http://www.myrepublica.com/portal/index.php?action=news_details&news_id=36643
MicroCapital.org story, March 8, 2011, “MICROCAPITAL BRIEF: Beema Samiti (Insurance Board) of Nepal Forms Panel to Define Microinsurance Products,” https://www.microcapital.org/microcapital-brief-beema-samiti-insurance-board-of-nepal-forms-panel-to-define-microinsurance-products/
MicroCapital Microfinance Universe Profile: Beema Samiti (Insurance Board), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Beema+Samiti+%28Insurance+Board%29
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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