June 27: The Insurance Board has formed a committee to study the reason behind dismal growth of micro insurance sector. The board has formed a four-member committee under the coordination of Sushil Dev Subedi, the director of the board. 

Members of the committee include Punam Gywali, Deputy Director of the board, Chanki Chhetri, CEO of Sagarmatha Insurance and Poshakraj Poudel, CEO of Citizens Life Insurance Company. The committee has already started its study into the issue and will be submitting a report after the completion of the study in twenty days. 

Raju Raman Poudel, Managing Director of the board, said that micro insurance has not been able to expand its business so a study committee has been formed to study this matter.  The committee will study into the issues that are preventing the growth of the micro insurance sector and find out the mechanism to be adopted to expand its growth. 

At present, micro insurance services are accessible to 23 percent of the population. The government wants to increase its access to 33 percent of the population. To achieve the target, the board has been working on various issues. In this regard, the board has come up with the committee to figure out strategies to expand the micro insurance sector. 

"If the business of micro insurance could be expanded, it helps to increase access to insurance. So study is being conducted with an objective to expand people's reach to insurance," he added. 

However there is not any intention to award licenses to micro insurance companies. "The study is not intended to provide license to micro insurance company. If the study implies a need for a separate company, it will be established but the board has not given any consideration to it as yet," said Poudel.