Nepal: Beema Samiti slashes premium rates for Riot Strike and Terrorism
Source: Asia Insurance Review | Aug 2017
Nepal Property & Casualty Regulation Specialty Terrorism
Beema Samiti (Insurance Regulatory Authority of Nepal) has reduced premiums for Riots, Strike Damage under Fire Tariff by 25% and for Malicious, Sabotage and Terrorism by 50%. The new premium rates came into effect from 16 July. Earlier, the regulator had also reduced private car own damage premium rate to the tune of 25% to 35%.
The decision to reduce the rates is due to the considerable decline in the number of such violent incidents. The premium rates have been revised keeping into view the financial burden that the insured has to bear in spite of decrease in cases of such activities in recent days.
It is expected that the policyholders will benefit from the revised rates and the business of the insurance companies will also grow as cheaper rates attract more customers leading to more penetration.