Risk and risk and risk.........life is full of risks. Once we born, it starts with aspirations and ends with our death. From the very early morning, once we open our eyes in the bed till we wash, bath, have breakfast, lunch, dinner, go to work for livelihood, on the way to and back from work and again go to sleep........and even while sleeping at home or anywhere else we are surrounded by various types of sudden accident and or natural risks. Our personal or business properties and lives are always at the stake of physical losses resulting from earthquake, fire, flood, hurricane, cyclone, terrorism, theft, burglary, robbery, personal and traffic road accident, various diseases, fidelity, dishonesty and finally natural death. To fight and to preven, minimize or compensate such financial losses arisen due to such incidents and maintain our lives as usual to the same situation a tool or technique or method of such compensation and settlement has been envisaged by our fore-fathers, ancestors as traditional groups system of mutual co-operation called as Parma, Guthi, Dhikuri, Dharma Bhakari etc in Nepal. At the same time, we couldn't maintain and modernize such system or technique as per our need. But about 200 years ago various groups of people specially in marine insurance initiated by Lloyd coffee House of London started a mechanism to compensate their members' losses due to such accidents and incidents charging and collecting certain amount of money as fee and created a fund to bring him or her back to normalcy as one's own previous financial position.

Nepal has witnessed nearly six decades of professional insurance practices and experiences from government and private sector. Till 2007 there are 21 companies collecting about Rs.5 billion of premium which is estimated by Beema Samity to be Rs 7.26 billion and Rs. 8.11 billion by 2008/09 respectively. A 20% of annual growth rate is seen presently in the insurance sector only. The general insurance contributes 1.41% and life insurance 0.53% in the national GDP of Nepal and their contribution is very low in comparison to SAARC and other Regional Countries.

2. Co-operative Insurance and Co-operative Values, Norms and Principles:
In view of the above mentioned background, it is experienced that the present government and private sector insurance services could not have delivered and reached to the nooks and corners, needy areas of the country. As per the GDP contribution data, only 1.41% from non-life and 0.53% from life insurance sector is seen. There is vast potentiality of insurance services and its delivery is highly needed in the villages, wards of Himalayan, mountains and Terai belts - from east to west and north to south of the country. With the advent of democracy by peoples' movement – Co-operative movement also got a new horizon, shape, mission and vision supported by a very flexible law, i.e. Co-operative Act-1992 and cooperative Rules, 1993.

After the introduction of this Act, for the 15 years a mushroom-growth of co-operatives has been witnessed. Out of 9000 Co-operatives having 1.8 Million Co-operators' transactions amounting to Rs. 22 Billions as Deposits/Credits with their billions of rupees investment a new area of economy has been opened in the country. Despite a few cooperatives of failure as close down, bankruptcy of stores, absconding of cooperative board members taking away a big amount of money in the major cities, still very successful. Active and community based local cooperatives as found as models also functioning smoothly in accordance with the internationally recognized co-operative values and principles.

With all these facts and figures, it is imperative to say that co-operative insurance is basic need and requirement of the time to reach to the poorest of poor and middle class, fixed income at the grass root levels with its nook and corner network. There is a possibility of co-operative insurance society's organizational growth with a big market to operate (Produce the products/services), distribute (market reach) and prompt claim settlement (after sale service) by the members, of the members and for the members as per co-operative principles. The two national level interaction programme (2006 November 26 and March 31) organized by the Cooperative Services Security Fund Ltd (COSELI) and cooperative/Golden Jubilee Celebration Committee with the participation of high level government and Semi-Government officials (Ministry of Finance, Department of Co-operatives, National Co-operative Development Board and Insurance Board) and representatives of Central Cooperative Unions and Local Co-operators of 150 participants, have also endorsed the idea and need of co-operative insurance in Nepal.

Insurance Co-operatives can fulfill the need of rural poorest of poor, middle class and fixed income salaried people's aspiration to be secured financially against various types of risks/accidents, as micro-insurance. The cooperatives International experience of 140 years and national experience of 50 years could be assets to support this idea of micro-insurance through co-operative approach in Nepal. Various agencies like International Co-operative Alliance, International Co-operative and Mutual Insurance Federations (UK), Japanese Consumer's Co-operative Union, National Co-operative Federation of Nepal, National Co-operative Development Board, National Co-operative Bank and other central level Unions could be the major investor to support such co-operative insurance by their equity participation in Co-operative Services Security Fund Ltd. (COSELI). By following the various co-operative values, norms and principles like Voluntary and Open Membership, Democratic Control, Member's Economic Participation, Autonomy and Independence, Education, Training and Information, co-operation among co-operatives and Concern for community-a Co-operative-Insurance can be operated at any time, anywhere if its members feel its importance and requirements/need. They also can settle the claims secured by themselves with support of various Re-insurers from co-operatives itself.

3. Co-operative Insurance..... "COSELI" a gift for Nepali Society :
Realising, re-emphasis and reiteration of the above mentioned background, the volume of insurance business transactions, turn-overs and co-operative norms, values and principles, 41 co-operators, professionals, social workers, businessmen etc. met in the General meeting and decided to establish, operate and manage a micro insurance co-operative, called "Co-operative Services Security Fund Ltd. (COSELI)". It is registered by the Division Co-operative Office–Kathmandu under the Department of Cooperative and started its work by issuing various security policies (Surakshya-Kawach) on August 01, 2007 (Shrawan 16, 2063).

COSELI has an authorized capital of Rs. 10 million with Paid-up of Rs. 7 million having 86 members (including 19 Co-operatives) insurance policies transactions of Rs. 1.5 millions and have objective to invest in other shares, Fixed Deposits, Venture Capital, Co-operative Stores, Training, Management contract and Consultancies etc. Till date, out of 400 policies issued within 10 months, only 7 cases, i.e., below 0.05 % claim amount of Rs 8000 have been settled even within a week time to its members. The major risks coverage and their security fee as premium are given hereunder.

Table 1: Types of insurance Policies & Premium (Indicative)

4. Relation between Insurance Co-operative and Government, INGO'S & NGO'S And Business Houses :
There must be a pragmatic and strong approach to encourage and promote micro-insurance cooperative on the part of government. The micro- insurance cooperative must have objectives set in a national perspective. It must adopt the insurance policy which can provide its services to reach the rural mass, small and marginal people and poverty stricken people. It is one of the best strategies of government to fight against poverty.
With, for and by the help of local people, a group of 25 persons can start micro-insurance co-operative to secure and minimize their financial risks/losses in any geographical areas.

Since micro-insurance co-operative is an organization of its members, for its members and by its members. At initial stage 25 promoter members can hire and appoint one financial/insurance professionals as a manager headed by one of its Promoter board members for arranging the insurance modality. Based on the modality it can start issuing appropriate policies as per their members' local need, requirements and aspirations. Here comes the role of various government agencies, INGOs, NGOs, business houses and co-operators for the moral support-being members by transacting and purchasing insurance policies in the interest of micro-insurance co-operative.

Such micro-insurance cooperative will have difficulty to operate in isolation. It needs re-insurance facilities and looks for them either from co-operative structure or from public or private companies. For them efforts should be continued from either Insurance Board or Department of Cooperative for its specific legality by amending both Acts and rules. Being local and community based, the claim settlement process will also be very simple. No chance of false claim will register. The recovery settlement will be amicably and authentically made. The management and control system will also be in the hand of the members guided by themselves. This will help the government to reduce the financial burden and develop a system as welfare state. The socio-economic welfare programme for the local members will be done by the local members by themselves. That will be a mileage development strategy for local self-reliancy, self-development & self-governing. No members will seek and look for help of government and INGO'S for the small and medium investments, transactions and return. However, the insurance cooperative expects legal and technical support from the government. They will have new opportunities for creating jobs/self-employment according to their need & aspirations under their planning and control system for themselves.