Government to Raise Third-Party Insurance to Rs 1 Million, Reform Cooperative Regulation

Kathmandu — Finance Minister Dr. Swarnim Wagle has announced various plans and programmes for the insurance, securities, and cooperatives sector through the budget.

Wagle said arrangements will be made requiring at least 20 percent of the insurance underwritten by Nepali insurance companies to be reinsured through the Nepal Reinsurance Company.

The Finance Minister said the leadership and operation of the group insurance fund for long-term insurance will be arranged through the Nepal Reinsurance Company. He said arrangements will be made for a certain portion of reinsurance to be placed with foreign reinsurance companies for risk reduction.

He said third-party insurance coverage, which has long been unable to increase, will be raised to Rs 1 million. To reduce vehicle accidents, arrangements will be made to require the installation of accident devices in vehicles, and insurance for accidents, critical illness, and transport, among others, will be made mandatory.

Wagle said arrangements will be made for the reinsurance of protection programmes operated by the Employees Provident Fund, the Citizen Investment Trust, the Deposit and Credit Guarantee Fund, the Health Insurance Board, and the Social Security Fund through the Nepal Reinsurance Company.

The Finance Minister said insurance will be made mandatory when approving building construction blueprints in urban areas.

He said a separate bill on securities market management and offences and punishment will be presented in Parliament, and a Trustee Bill will be drafted to regulate financial trustees.

Wagle said the role of the National Cooperative Regulatory Authority will be made more effective in the monitoring and regulation of cooperatives whose main business is savings and credit.

The Finance Minister said the work of refunding savings through the Integrated Depositor Protection Fund — established as a revolving fund to be reimbursed from the savings and the sale of assets of troubled cooperatives — will be continued to return funds to depositors of troubled cooperatives.