Attraction in Covid-19 Insurance Declining

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Attraction in Covid-19 Insurance Declining

June 28: While the country is reeling with spike in coronavirus cases over the last few weeks, the attraction of people towards the Covid-19 Insurance programme is fading away. According to officials of the insurance companies, the sales of the policies of the insurance scheme, which was introduced in mid-April to a huge attraction among the people, has not moved ahead as expected in the recent days.

According to Chanki Chettri, general secretary of Nepal Insurers’ Association (NIA), the growth of Covid-19 insurance policy has decreased. “The number of people buying the insurance policy is increasing. But the growth is contracting,” he said. “The daily sales of the policies is declining.”

According to NIA, more than 18,000 people used to Buy Covid-19 insurance policy on a daily basis earlier, which is now less than 5,000. Until now, 514,156 people have already purchased the Covid-19 insurance policy and Rs 280.64 million has been collected as premium.

Among all the insurance companies Shikhar Insurance has sold highest number of policies collecting premium of around Rs 50.27 million. Similarly, Siddhartha Insurance is in the second position collecting Rs 20.55 million.

However, as the transactions of the policies is carried out through an insurance pool, the profit will be distributed equally among the insurance companies. According to NIA, Nepal Reinsurance Company will get 20 percent of the business. The rest 80 percent business will be distributed among the 20 non-life insurance companies who are engaged in the transaction of Covid-19 insurance policies.

NIA informed that five claims have already been made by the policyholders and they have been handed over the amounts of the claims.


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