July 23: The Insurance Board Nepa (IBN)  is preparing to form a separate policy for natural calamities like flood and landslides. The board has initiated the process to formulate a separate insurance policy for the financial security of losses incurred due to flood and landslides. The board realized the need of such policy due to increase in losses from natural calamities.

IBN said it is currently studying the prospect of the new policy and the insurance premium rate. The board confirmed that it is preparing the new policy to provide compensation to the victims of flood and landslides.

Once the policy is formed, insurance companies can start selling the policy. The proposed insurance policy includes a package of insurance for house and other properties as well as accidental insurance in case of natural disaster.

According to the IBN, the new policy will can be availed in coordination with the local units. Executive Director of IBN Raju Raman Poudel informed that they have prepared a draft of the policy which provides insurance package for all the residents of a particular local unit. The local unit has to submit the details of all the households within its jurisdiction as well as property details to the insurance companies to avail the insurance facility.