Insurance sector yet to meet government expectations: Kedarnath Bhatta

Dhangadhi: Kedarnath Bhatta, Head of the Nepal Insurance Authority Sudurpaschim Province Office, has said that the insurance sector has not expanded in line with the expectations of the government.

Speaking at an insurance-related discussion program organized by the Nepal Insurance Authority in Dhangadhi, Bhatta stated that there is a clear gap between government policy and its implementation. “Although insurance is regarded as a major financial instrument for risk transfer, its implementation remains weak,” he said.

According to Bhatta, despite provisions in the Disaster Risk Management Act, 2075 BS, which stipulate compensation for human, public and material losses caused by disasters through insurance, effective implementation has not taken place. He added that even with subsidies of up to 80 percent in the agricultural sector, a large number of farmers remain outside the insurance system.

Bhatta said that weather-based and index-based agricultural insurance models would be more suitable for geographically remote areas. Such models, he explained, would allow farmers to receive claims based on specific indicators without the need for house-to-house damage assessment.

Describing the Far West as highly vulnerable to natural disasters, Bhatta emphasized the need to adopt insurance as a policy tool to minimize losses caused by floods, landslides, fires and accidents. He also stressed the importance of bringing public property and government liabilities under insurance coverage.

Journalists participating in the program said that despite the existence of laws, implementation remains weak, and emphasized that the media should continue to monitor the sector. The Nepal Insurance Authority committed to maintaining cooperation with the media to promote transparency and accountability.