Insurance Premium Exemption to Industries during Lockdown Period

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Insurance Premium Exemption to Industries during Lockdown Period

August 9: Industrial enterprises will be receiving an exemption of one-third (33.33%) of their total insurance premium. This exemption will be valid for the premium paid during the lockdown period from March 24 to June 13.

This decision was taken after a meeting between the Insurance Board, insurance companies and the representatives of private sector on Friday. The provision will be implemented after the Insurance Board issues an official circular to the concerned bodies.

The budget announced for the current fiscal year has a provision regarding the payment of insurance premiums by the industrialists. The decision about granting a discount on the insurance premiums to the industrial establishments was taken in relation to the implementation of this provision. In addition to this, a preliminary agreement has also been reached about the adjustments of the insurance premium for terrorism and riots.

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Confederation of Nepalese Industries (CNI), and Nepal Insurers’ Association had also attended the meeting on Friday. Shekhar Golcha, Senior Vice-President of FNCCI, said, “A preliminary understanding of providing one-third discount on the insurance premium for the period of lockdown has been reached, which is very beneficial to the industrialists.”

The government has enforced the nation-wide lockdown since March 24 to control the spreading of coronavirus. All of the industries except those providing essential services had been shut down during this period.

An official from the Insurance Board informed about the reduction in the industries’ exposures to risks, which was the reason for the subsequent discount on the insurance premium. The official also said that the circular will probably be issued within this week.

The premium per day for the related industrial establishments will have to be calculated by dividing the annual premium by 365. The industrialists will get a discount on their premium for the period of the lockdown on the basis of the same per-day premium. The industrialists have already paid the insurance premium for the period of the lockdown.

It has been informed by the Insurance Board that this exemption will be carried out once the insurance policy is renewed.

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