The Association of Independent Power Producers, Nepal (IPPAN) has requested the Insurance Authority to implement the agreement reached with the Nepal Insurance Association regarding the removal of the provision of minimum fee in the insurance of hydropower projects.

A delegation led by IPPAN Chairman Ganesh Karki asked Insurance Authority Chairman Sharad Ojha on Tuesday to remove the provision of minimum charges (de-tariff)  It has been requested to implement the agreement on the matter.

Karki also asked the authority to make arrangements for the hydropower project to have no insurance, to negotiate at the last moment during renewal, and to pay interest if the claim is delayed as it takes 6 months to 1 year to get the claim payment . Karki said that while the delay in the payment of claims of other companies does not make much difference, those who wait for the payment of the claims of the hydropower project and wait for the reconstruction of the project will also suffer a double blow as the period of the project permit will be wasted by 1 year . Ippan has also stated that due to delay in payment of claims, insurance companies send surveyors late, send people who do not understand hydropower, and when such surveyors give reports late, they have to wait for years to get paid. The issue of hydropower insurance is still a hot topic after the 'minimum premium guidelines issued for non-life insurance companies 2078' increased the premium of hydropower projects up to 500 percent,' he said. Said .

After Surya Prasad Silwal, the then chairman of the authority, said that it would be valid if the insurance company and the promoter company agreed on the guidelines, IPPAN and Bimak Association informed the authority that they had agreed to go to the detariff in July last year . But the authority has not been able to proceed with any process in this . Ippan said that even though 2/4 of the projects were damaged by the flood and landslides, many projects are safe, so they have been maintaining the position that detariff should be applied.

IPPA Vice President Uttam Vlon said that Nepali reinsurance companies are looking for a certain percentage of other insurances, but at the time of reinsurance of hydropower insurance, they take the facility of 'right of refusal' and said that system should be removed .

Karki said that since the big reinsurance companies of the international market also raised questions about why Nepal's reinsurance company did not re-insure Nepali hydropower, the authority should take the lead in solving this problem. any  An unclaimed project used to pay an annual premium of 17 lakh rupees, but now it has reached 57 lakh rupees. He says that the premium of other projects has increased up to 500 percent.

Sharad Ojha, Chairman of Insurance Authority, said that on the one hand, hydropower entrepreneurs are in trouble when premiums are increased from 250 to 500 percent, but on the other hand, they will only speak after studying why the reinsurance companies did not see profit despite such expensive premiums. He said that both promoters and insurance companies benefited after detariffing in the US, but  After the failure of the same thing in India, the minimum rate was set and the maximum rate was left on the basis of risk. He says that we should study what can be done in Nepal as well.