KATHMANDU: A staggering 90.6% of Madhesh province residents lack access to insurance, according to recent data. The total population of Madhesh province stands at 6 million 114 thousand.
The lack of awareness about insurance and the prevalent practice of purchasing insurance schemes from India across the border contribute to the low attraction towards insurance in this region.
The Nepal Insurance Authority’s Madhesh Province Office reported that only 573,433 people, accounting for 9.4% of the population, have purchased insurance policies in the province.
This statistic underscores the general public’s minimal interest in insurance.
Kushum Sharma, Chief of NIA Madhesh Province Office, emphasized the need for a concerted effort among all three levels of government to ensure insurance coverage for the entire province, given the low access to insurance in Madhesh.
“Access to insurance in Madhesh province is notably low.
Given the economic and health challenges faced by the people here, it’s imperative to implement plans for comprehensive insurance coverage across the province in collaboration with all levels of government,” Sharma stressed.
He highlighted the success of the Karnali provincial government in providing insurance to all residents and expressed readiness to facilitate similar initiatives in Madhesh.
The issue of inadequate insurance access extends beyond Madhesh province, affecting citizens nationwide.
As of April 12, 2024, only 43.3% of the country’s population had insurance coverage, with 56.7% lacking life insurance.
By 2075 BS, only 17% of the population nationwide had insurance access.
Nirmal Khanal, Assistant Director of the NIC Madhesh Province Office, attributed the low insurance literacy among citizens and the prevalent practice of purchasing insurance from Indian companies in border markets as key factors contributing to the lack of insurance access.
“High poverty and illiteracy levels in Madhesh, coupled with the tradition of buying insurance policies from Indian companies across the border, have hindered efforts to increase public interest in insurance,” Khanal explained.
He further highlighted issues such as the desire for unfair benefits from insurance, insufficient human resources in insurance branches/sub-branches, and misunderstandings about insurance as additional barriers to increasing insurance attraction in Madhesh province.
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