Himalayan News Service

Kathmandu, May 30:

Shikhar Insurance Company Ltd, the youngest general insurance company in Nepal, has collected over Rs 129.28 million insurance premium during six months. According to a press release issued here today, the company so far has cleared Rs 57,549,389 as insurance claim during the period. Established in May 2004, the company officially began commercial operations since November 2004 with its office at New Baneswar, Kathmandu, with approval from Insurance Board to work in the area of general insurance business. The largest amount of insurance claim paid during the period is to Air Dynasty, in which Shikhar Insurance settled claims worth Rs 57,549,389. The company is the first Nepali general insurance company to introduce Premia Version 10.0 software of ICICI Infotech, India, adds the release. The company has been working in general insurance business of fire, motor, marine, aviation, engineering and other personal and group accidents, travel and health. Shikhar Insurance has recently opened its branch office in Biratnagar, while new branches at Birgunj and Pokhara are being planned in the near future.

Insurance industry is an emerging financial sector of the country. Altogether 18 insurance companies, including 12 non-life, three life, two life and non-life and one credit and livestock are sharing the cake of annual premium worth around three billion rupees. Although the insurance sector is growing at an annual rate of 15 per cent, lack of clear policies and the seeming inability of the insurance companies to create awareness is hindering growth. The annual turnover of insurance industry is about three billion rupees and contribution to the national revenue is over Rs 90 million. The industry employs around 1,300 professionals directly and 10,000 indirectly.