Nepal's insurance regulator will lower insurance premiums against combined risks from terrorism, strikes and malicious damages with effect from 16 July, the first day of the next fiscal year for the country.
The Insurance Board (IB), the insurance sector regulator, has announced that the premium rate has been reduced to NPR200 (US$1.94) per policy amount of NPR1 million from the existing tariff of NPR260. The reduction is to be made because the incidence of terrorism, strikes and malicious damages has reduced in recent years.
"As we are hardly seeing any incident of terrorism- related sabotages and the number of strikes being organised by political and other forces is also nominal, we are implementing the reduced insurance premium for coverage of damages from terrorism and strikes," Shreeman Karki, IB director told the Xinhua News Agency.
During the years from 2008 to 2013, a total of 4,451 strikes, small and large, took place as the country underwent a turbulent period of transition after the end of the civil war in 2006, according to a study by Nepal Rastra Bank, the central bank of Nepal. However, since the second constituent assembly elections were held in 2013, the number and frequency of strikes have gone down sharply, barring a prolonged strike in the southern plain when Nepal promulgated the new constitution in 2015.