Life & Non-Life Insurance: An essential for risk management in Nepal
Insurance for anything other than human life is categorized as non-life insurance, which is also synonymous with general insurance.
KATHMANDU: The lyrics of Dinesh Adhikari, music by Natikaji, and sung by Taradevi, “Soche jasto hunna jeevan, samjhe jasto hunna jeevan, jasto bhogyo ustai huncha dekhe jasto hunna jeevan” (roughly translated as – Life is not always as we imagine, nor as we think; what we experience is not always as we see),” truly resonate with the reality that life never turns out the way we expect.
This is why insurance is indispensable for living a risk-free life. Insurance for anything other than human life is categorized as non-life insurance, which is also synonymous with general insurance.
In Nepal, while not everyone is fully aware of insurance, most people have some understanding of it. The number of life insurance policyholders is rising, and there is growing interest in non-life insurance as well.
According to the Insurance Authority of Nepal, the global non-life insurance market saw a modest increase from USD 38.24 trillion in 2021 to USD 39.69 trillion in 2022.
Despite this progress, a significant portion of the population in Nepal is still outside the reach of non-life insurance.
Himalayan Everest Insurance (HEI) is one of the oldest and most reliable companies in the non-life insurance sector, playing a key role in offering a wide range of services, including motor, property, health, agricultural, travel, and business insurance, to help secure a better future for its customers.
But why is non-life insurance so necessary? Disasters, whether natural like the 2015 earthquake or man-made like industrial accidents, road accidents, health issues, theft, fire, or other hazardous situations, are common in Nepal. In such cases, non-life insurance acts as a robust tool for managing these risks.
Key services of non-life insurance include:
Motor Insurance: According to Nepal Police statistics for the fiscal year 2021/22, Nepal experiences 97 road accidents daily, resulting in fatalities and significant vehicle damage. Motor insurance provides financial security for those affected by accidents. HEI offers insurance plans for motorcycles, private vehicles, and commercial vehicles.
Property Insurance: In a country prone to earthquakes, having property insurance for homes and commercial buildings is crucial. For example, the recent floods and landslides in October caused over Rs 17 billion in damages. HEI’s property insurance plans help protect against such risks, especially for businesses and entrepreneurs.
Health Insurance: Healthcare costs can be overwhelming, especially in emergencies. A simple check-up could cost you thousands, and unforeseen health issues can place a heavy financial burden on families. HEI offers health insurance plans that cover hospital bills, medical treatment, and emergency care for individuals, families, and employees.
Non-life insurance is a vital component of financial security in a country like Nepal, where the threat of various risks is ever-present.
Through offerings like vehicle, property, and health insurance, Himalayan Everest Insurance ensures that the public has reliable options to safeguard their assets and well-being.
