Insurance through Banking System

February 17: Insurance Board (IB) is preparing to co-ordinate with banks in a bid to expand insurance sector. "Such co-ordination will be helpful to increase insurance rate in urban areas and to provide insurance accessibility in rural areas," said Chiranjibi Chapagain, Chairman of IB. He added "IB wants to build a rapport with banking sector for mutual benefits. For that matter, a plan is being formulated to recruit an insurance representative in banks separately for insurance transaction."

According to him, in order to expand insurance sector through banking system, the banks should stressed on accessibility of software. He clarified that the plan has been formulated to provide convenient insurance through banking channel.

He mentioned that the step is targeted towards implementation of internationally practiced 'Bancassurance' in Nepal. He said "Presently, 8 per cent of total population has life insurance accessibility. Summing up with non-life insurance, it is 12 per cent. It has just 2 per cent of contribution in Gross Domestic Product. As the expansion of insurance sector is sluggish, co-ordination with banking sector can boost the insurance accessibility."

As per him, IB will possibly co-ordinate with all banks and Nepal Rastra Bank to achieve the target of reaching 25 per cent insurance accessibility.