Why delay Corona insurance payments ?

Dec Sat 2021 07:24:39

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Why delay Corona insurance payments ?

Kathmandu. The problem is compounded by the lack of coordination between the Insurance Committee and the Ministry of Finance regarding the payment of Corona insurance claims. Contrary to the global recognition of insurance, the Corona Insurance Program was announced in the midst of the Corona epidemic in Nepal. However, after a large number of insurers became infected and the claim payment requests were received, the insured people were hit hard after the insurance companies showed each other and shied away from their responsibilities.

Moreover, as regulators and policy makers, such as the Insurance Committee and the Ministry of Finance, have become indifferent to the problem, insurers are less likely to pay claims immediately. The general public started insuring after the Insurance Committee brought a modality of getting a lump sum of Rs. As the number of insured began to increase, insurance companies forced the government to bear the responsibility. The government was also ready to bear the responsibility. However, with the increase in the number of corona cases in Nepal since July, the government changed the criteria after there was a dispute over the payment of corona claims.

According to the new arrangement, if the person who has been confirmed infected is only living in home isolation, he / she will get only 25 percent of the amount even if he / she has insured Rs 1 lakh. The new provision that the remaining amount has to be paid only on the basis of the cost of hospitalized covid treatment has reduced the attraction towards Corona insurance. As a result, the number of insurers decreased after the government changed the criteria. Of the corona insurers, 35,000 have received payment and 120,000 have not yet paid. So far, Rs 5 billion has been paid and Rs 11.13 billion is yet to be paid, said Rajuraman Poudel, spokesperson and executive officer of the Insurance Committee.

The Ministry of Finance does not seem to be taking the initiative to solve this problem. The Ministry of Finance has agreed with the said options submitted by the Insurance Committee. On the other hand, the Insurance Committee seems to be evading its responsibility by pointing a finger at the Ministry of Finance saying that the government has not paid the money.

Insurers who are hoping to get Corona insurance payments are becoming frustrated. Corona, which is becoming an excellent example of irresponsibility of responsible government bodies, does not seem to be resolving this issue of insurance claim payment immediately.