Rastriya Bima Sansthan enters its 54th year : Urge to focus on fast, quality and technology-friendly service delivery while increasing reliability


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.