KATHMANDU: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has objected to the Insurance Board’s decision to fix the premium rate of insurance claiming it is against the open market policy.

After the Board fixed the minimum premium rate for all non-life insurance companies on September 22, the federation issued a press release on Tuesday stating that it has the Board’s decision has drawn its serious attention.

“In an open market economy, setting a minimum premium by a regulatory body will suddenly increase the cost of the project,” FNCCI said, adding, “FNJ also demands immediate discussion with all stakeholders on this issue.”

The federation also urged non-life insurance companies to review the directive issued by the regulatory body regarding the minimum premium rate for non-premium insurance business to discourage competition.

FNCCI asked the concerned stakeholders to create a conducive business environment that promotes investment and creates employment for the revival of the economy.