Till about a decade ago, the general insurance business in Nepal largely meant fire insurance of factories. Now, with the growth in the number of insurance companies, the market is offered newer and more fantastic insurance policies in the interval of a few months. The latest example is the Householder’s Insurance Policy from NICL, an Indian non-life insurance company that operates in Nepal through a branch which in turn has several branches at various parts of Nepal.

The Policy covers building, the contents including jewellery, TV/VCD, personal baggage carried on travel within Nepal, liability for domestic servants, hospitalization expenses and fidelity guarantee for the employees of the household head. And the risks covered against include not only fire, earthquake and related risks, but also against loss of rent and burglary.

The history of NICL in Nepal dates back technically to 1974 when it registered itself with Beema Samiti, the regulating body of Nepal’s insurance business. "But in reality this company has been operating in Nepal for the last four decades," says Dr. A.S. Kohli, the company’s Manager for Nepal. His indication is to the fact that two other companies, Ruby Insurance and Hindustan Insurance that later merged with NICL, had been operating in Nepal for about a decade before 1974.

While the new entrants into Nepal’s insurance business were mostly concentrated in the traditional fields of insurance such as fire, and marine, the old players started noticing their size of the cake shrinking. Government-owned Rastriya Beema Sansthan, the older of the two existing composite insurance companies (dealing in both life and non-life insurance) experienced an absolute decline in its gross premium collections. Though the rest of companies managed to maintain a steady growth in premium collection that was with much difficulties. However, thanks to the connection with the head office, NICL had not much of the problem as it could draw on the stock of wide range of insurance policies available in India and replicate them to cater to specific needs of the customers here.

Still, it is surprising that they took so long to come with the Householder’s Insurance Policy, in which, experts say, there is very good prospect for business. Falling in earthquake prone-zone, Nepali households would not delay in buying an insurance cover if they understood it properly. Some Nepali insurance companies have already been floating policies to cater to this market, but they have not been so successful to tap the potentials largely because of weak marketing, it is pointed out. So has NICL come with the Policy with some new strategies, say the company sources, who however decline to reveal the strategy.

In the past NICL was trying to go into agriculture. With his personal experience in selling policies in agriculture sector particularly while he was stationed in Punjab of India, Dr. Kohli tried to sell similar policies also in Nepal. And his hopes were heightened when the Finance Minister in his budget speech for the fiscal year 1999/2000 announced a program to start crop insurance. But as the program was not pursued by the government, the business expectations dissipated.

Send your feedback to the editor: bizage@ecomail.com.np 1999 © Mercantile Communications Pvt. Ltd. P.O. Box 876, Durbar Marg, Kathmandu, NEPAL. Tel : 977 1 220 773, 243 566 . Fax: 977 1 225 407. Reproduction in any form is prohibited without prior permission. No part of the articles which appear in the internet version on BUSINESSAGE may be reproduced without the permission of Mercantile Communications Pvt. Ltd. For reprinting rights, please write to us.  Send us your feedback:contact us . CLICK HERE FOR PAST ISSUE. This site is best viewed at : 800 X 600 resolution

Back to the top