KATHMANDU: Finance Minister Dr Yubaraj Khatiwada on Sunday warned of stringent action against insurance companies failing to pay compensation to customers on time.

Speaking at a program in Kathmandu today, Minister Khatiwada said some insurance companies have been found to be harassing the people by not paying the claim amount on time.

Minister Khatiwada also urged insurance companies to reach out to small companies as well rather than focusing their businesses in big companies.

He maintained that the government has recently introduced a health insurance policy for financially weak citizens with free premium amounting to Rs 1,00,000.