Insurance sector needs new rules

Kathmandu, May 9

Prof. Dr. Fatta Bahadur K.C., Chairman of Insurance Board, informed on Monday that the new insurance policy that was in the offing would address various issues related to this sector.

"The new policy will have a provision of allowing cooperatives to run insurance business," he said.

Despite legal restrictions, more than 400 cooperatives in the country are running insurance business.

Speaking at an interaction organized by the National Cooperatives Federation (NCF) in its premises, Prof. K.C. said that the new policy would help increase the reach and benefits of insurance far and wide.

At the programme, cooperatives activists urged the government to expand the purview of insurance industry allowing the cooperatives sector to carry out insurance job in the country amending the existing insurance policy to benefit the poor, marginalized and rural farmers.

They blamed the government for its apathy towards micro insurance promotion in the country.

They also demanded that the government amend the existing laws, policies, rules restricting the cooperatives from running the insurance business.

NCF Chairman Keshav Badal said that as the cooperatives organisations’ reach was far and wide, it would be appropriate to allow them to run insurance business to expand the purview of the insurance industry in the country.

"Cooperatives have right to run any business, except those that are against their principle. If the members of a cooperative organization agree to share risks among themselves, others will not have to face any problem," he said.

http://www.gorkhapatra.org.np/gopa.detail.php?article_id=49881&cat_id=27