A day after directing insurance companies to discontinue issuing the Covid-19 insurance policies, the Insurance Board (IB), the insurance sector regulator, has decided to give continuity to the coronavirus insurance scheme. IB directed insurers yesterday to put off the programme until further notice. Nepal Insurers’ Association (NIA) had earlier asked the board to discontinue coronavirus insurance scheme saying that it has become too risky for the companies due to the fast rise in Covid-19 cases in the country. IB was criticized for introducing the insurance programme without conducting proper study of the situation and for lack of foresight.

The risk of Covid-19 insurance will be shared between the government, IB, Nepal Reinsurance Company and insurance companies. As per the IB directive, the news policies under the scheme will provide coverage to the insured until Chaitra 1. The policies issued earlier provide coverage of one year to the insured from the date of purchase of the policy. IB has decided to further expand the scope of the Covid-19 insurance scheme. In a meeting with CEOs of insurance companies today, IB directed insurers to work to issue at least 10 million Covid-19 policies.