Insurance coverage period extended as a new relief measure for importers

Kathmandu December 8- Insurance Board (IB) has granted permission to the insurance companies to extend the validity of coverage period for freight stuck at Kolkata port from 60 days earlier to 90 days, in view of the difficulties faced by importers in transporting cargoes due to border-blockade.

As per IB’s circular issued recently, 17 non-life insurance companies can extend coverage time of 30 days and insures can obtain the service by paying additional 10 per cent of the premium amount.

Traders have said that IB’s circular is silent about cargoes in transit (ferried via road) and stuck at border point. Nepal-bound cargoes from third country and cargoes of bi-lateral trade that are also transported via road have been most affected due to border-blockade of Madhes-based political parties.

IB’s direction to insurance companies to charge additional 10 per cent of the premium while extending the coverage period has put additional burden on importers at a time when they are incurring unimaginable losses due to high demurrage charge levied by Kolkata Port Authority and shipping liners, which have accrued due to border blockade and protests in few districts of Tarai region organised by Madhes-based political parties. Source: THT