Kathmandu. Executive Director of Nepal Insurance Authority (NEA) Sushil Dev Subedi has said that the initiative has been initiated to improve the service by correcting the shortcomings seen in the insurance of the hydropower sector and reducing the cost.

NeA said this in a discussion with Independent Power Producers’ Association of Nepal (IPPAN), Nepal Insurance Association and reinsurance companies on contemporary issues related to insurance in the hydropower sector.

Executive Director Subedi said the NRA has taken serious note of the issues raised by IPPAN regarding insurance in the hydropower sector. He pointed out the need to find a balanced point to solve the problems related to hydropower and insurance, as well as services, and to look at the practice of other countries that have a social and economic environment similar to ours and have been developing hydropower.

Executive Director Subedi said the NRA would take initiatives to strengthen the internal mechanism for the construction of a separate insurance policy for the hydropower sector, increasing insurance awareness and resolving the problems related to insurance in the hydropower sector.

NEA Director Nirmal Adhikari said that the program has been organized with the objective of taking suggestions from the concerned stakeholders to solve the problems and challenges seen in the insurance sector of the hydropower sector.

On the occasion, IPPAN officials opined that the existing provision of insurance rate should be removed in the premium of hydropower sector, arrangement should be made to determine the insurance rate on the basis of demand and supply in the open market economy, and a separate insurance policy for the hydropower sector should be created.

On the occasion, office-bearers of Nepal Insurance Association and CHIEF Executive Officers of reinsurance companies said that international reinsurance companies have refused to re-insure the insurance of hydropower sector citing high risk in the hydropower sector in Nepal.

He also said that if the premium does not increase with the increase in the risk, there will be a situation in which the hydropower sector will not be able to re-insure in the coming days.

The program was organized with the objective of finding solutions by discussing the problems and challenges faced by ippan regarding insurance in the hydropower sector, the issues raised by IPPAN and the views of The Nepal Insurers Association and reinsurers in this regard.