Corona Insurance Claim Payment by Issuing Bonds : Association of Chartered Accountants

May Mon 2022 02:13:32

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Corona Insurance Claim Payment by Issuing Bonds : Association of Chartered Accountants

Kathmandu. The Nepal Chartered Accountants Association, an organization of accountants, has suggested that various insurance companies issue corona bonds to settle the remaining 11 billion claims of corona insurance. The union, in its suggestion for the budget for the coming fiscal year, said it would be appropriate for the government itself or the insurance companies to issue 4-year 4 per cent corona bonds equal to Rs 100 crore for immediate payment of corona insurance liabilities.

The union said that the policy of buying the bonds by commercial banks and including that investment in the statutory liquidity ratio (SLR) required by the banks would immediately fulfill the insurance payment obligation of Rs 400 million. The association says that the spread of up to 5 percent can be kept in the remaining 601 million term account and the insurance company will have to pay in the tenth year. In this way, the current 11 billion liability of Corona insurance payment can be fulfilled by issuing a total bond of 25 billion, according to the association.

The association has submitted suggestions to the Ministry of Finance, the Ministry of Industry, Commerce and Supplies and the Revenue Advisory Committee on how to pay Corona Insurance. A delegation of the association led by its president Anandaraj Sharma Wagle went to the concerned body and submitted its suggestions. Apart from Chairman Wagle, the delegation included General Secretary Tej Prasad Subedi, Treasurer Sushil Ghimire and members of the working committee and Shesh Mani Dahal and Tika Karki.

The association has stated that it has prepared final policy suggestions based on the opinions and advice of various government bodies, associations, and chartered accountants involved in the audit profession. The working committee of the association has discussed the received suggestions and only the necessary amendments based on the revenue principle to have a positive impact on the economy have been included in the final suggestion.