Kathmandu. The state-owned Rastriya Bima Sansthan has entered its 54th year of establishment. Addressing the annual festival held in the capital on Tuesday on the occasion of the corporation entering its 54th year, Chairman of the Insurance Committee Surya Prasad Silval urged to move ahead in the competitive insurance market.
Urging to focus on timely service delivery while
institutionalizing the achievements so far by playing a leading role in the
insurance sector of the country, he said,
He urged to extend the reach and scope of life insurance
services to the general public and the poor by focusing on institutional good
governance and financial transparency.
"Even though the committee is a regulatory body, it does
not believe in control alone," he said. We are working on how to make it
transparent and how to control it. '
Deputy Governor of Nepal Rastra Bank Chintamani Siwakoti
urged the institution to move ahead by changing and modifying the business
believing in competition.
Stating that the role of insurance sector would be important
to ensure safe business while minimizing the risks in the business sector, he
said that insurance business would be a solid pillar to achieve economic
prosperity through inclusive economic development reflected by the country by
building a self-reliant economy.
He pointed out the need to further contribute to the
development and expansion of industry and business through the expansion of
insurance access in the rural areas of Nepal where the access to insurance is
very low.
Economic Adviser of the Ministry of Finance Dr. Prakash Kumar
Shrestha pointed out the need to expand insurance access even though it has
increased compared to the past.
He emphasized that the market share of the corporation, which
is the oldest insurance company in the country, should also be the oldest.
Chairman of the Board of Directors Gangaram Kandel said that
the corporation was established 53 years ago with full government ownership in
the vision of a happy and prosperous society by developing the financial sector
and minimizing the risks to the lives of the insured by mobilizing internal
resources and means for proper economic growth of the nation.
He said that the insurance premium has skyrocketed due to the
strengthening of the condition of the corporation due to the agreement to
provide term life insurance to the employees. He said that the term life
insurance, which has been made public on the day of the annual festival next
year, aims to increase the insurance premium by extending the group insurance
to government institutions, local bodies, banks and cooperatives.
Poet Prasad Pathak, administrator of the institute As of
mid-April, life insurance service providers operating in Nepal have collected
Rs 5.68 billion out of Rs 66.16 billion in insurance premiums and the market
share of the corporation is 8.59 percent.
He said that the institute has succeeded in achieving the
fourth position in the life insurance business on the basis of life insurance
fund and the third position in terms of collection of insurance premiums. The
total number of insurance articles in the same period was 9151,687 and the
corporation was in the fifth place with 7,35,819 insurance policies, said
Administrator Pathak. He said that the corporation would make more efforts to
gradually increase its share in the Nepali insurance market.
Stating that share capital, insurance premiums received from
life insurance business and return on investment of life insurance fund are the
major financial resources of the corporation, he said that the available
financial resources are managed in a safe and high return as per the policy,
rules and directives received from the regulatory body.
He said that the reinsurance of the insured issued by the
institute has been done by the company in international reinsurance in excess
of its holding capacity.
Stating that the audit and general meeting of the corporation
have not been held for a long time, he said, "This is the main problem of
the corporation." Even the general meeting of the corporation could not be
completed on time as the audit work would not be completed without actuarial
valuation in life insurance. This situation has come up in the past due to lack
of actuarial valuation. The corporation has completed the work of six-year
actuarial valuation and sent it to the Insurance Committee for approval. The
draft report of the actuarial valuation for the later period has been received
from the insurer. '
Stating that the issues to be reconciled with the previous
period's approval will be adjusted and sent to the committee for approval, he
said, I look forward to the initiative. As soon as the reports and financial
statements are approved by the committee, I express my commitment to finalize
the audit work for the rest of the period and send it for approval. '
Informing that the general meeting of the remaining period
will be held after the audit, he said, "The institute has been giving
regularity to the internal audit and publishing the financial statements
quarterly." To make the accounting system transparent and systematic, the
work has been taken forward by appointing an auditor to implement NFRS.
The new product of the institute Term Life Insurance was
unveiled at the event where the best performing agents, employees and branches
of the institute were awarded.
