{"id":292073,"date":"2026-03-25T09:46:08","date_gmt":"2026-03-25T04:01:08","guid":{"rendered":"https:\/\/insurancekhabar.com\/?p=292073"},"modified":"2026-03-25T09:50:04","modified_gmt":"2026-03-25T04:05:04","slug":"the-reality-of-insurance-in-nepal-opportunity-or-neglect-2","status":"publish","type":"post","link":"https:\/\/english.insurancekhabar.com\/the-reality-of-insurance-in-nepal-opportunity-or-neglect-2\/","title":{"rendered":"The Reality of Insurance in Nepal: Opportunity or Neglect?"},"content":{"rendered":"<ul>\n<li><span style=\"color: #0000ff\"><strong>Santosh Acharya<\/strong><\/span><\/li>\n<\/ul>\n<p>Although the insurance sector is expanding in Nepal, the overall understanding of it is still limited and narrow. The state of Nepalese society shows the harsh reality that the importance of insurance has not been fully understood by the policy-making level, administrative leadership and influential sections of the society. As a result, there is a growing tendency to limit insurance to mere formalities or obligations. Insurance is not only a financial tool to protect against future risks, but it is also the basis of economic stability of a society. <\/p>\n<p>In developed countries, insurance is considered an essential part of lifestyle. However, in Nepal, the thinking of &#8216;what if?&#8217; has weakened the culture of insurance. The lack of interest in insurance, especially among the top strata, also means that there is no positive message about it in the society. Unless the leadership level understands the importance of insurance, its impact on the general public will be even less. Because we have a lot of public opinion in Nepal that learns and says of the big guys. <\/p>\n<p>No matter how many excellent plans the insurance companies have come up with, their effective implementation has not been possible due to lack of awareness but also due to lack of deep understanding of insurance and the development of attachment to short-term profits. The daily fluctuations in the stock market and the price of gold and silver have boosted the expectation of high returns in the short term. The interest in it is increasing day by day. Investors often follow market rumors and imitations without properly assessing the risk without understanding that the market is determined by demand and supply, and without doing real financial research of the investment institution. <\/p>\n<p>In such a situation, while the financial instruments necessary for long-term investment and effective risk management are important, we are ignoring the real essence of the insurance sector, its core essence and the characteristics that provide long-term safety and stability by looking at all investment instruments from the same perspective. Therefore, insurance is basically a powerful means of risk management. <\/p>\n<p>Insurance plays an important role in reducing uncertain risks to a person&#8217;s life, property, health and business. However, in Nepal, most people see insurance as a tax exemption on taxable income, even if it is an immediate benefit or insurance, rather than as a long-term security measure. <\/p>\n<p>Similarly, our limited understanding of insurance is also evident from our limited understanding of insurance due to the compulsory insurance prescribed by the Government of Nepal for property insurance or vehicle renewal while taking loans. Understanding the importance of comprehensive vehicle insurance but not being able to prioritize it has become a matter of deep concern in itself. <\/p>\n<p>In my view, if the government had not made certain insurance provisions mandatory, perhaps those practices would not have been part of our lifestyle. The reason behind this is the lack of knowledge about financial safety and awareness from a young age, which should have been subtly ingrained in our consciousness. The question also arises whether it is not. It is an indispensable need of the hour to take necessary initiatives from the policy-making level after conducting in-depth study and research on this issue. <\/p>\n<p>Similarly, the strategic importance of insurance has not been given enough priority by the policymakers and decision-makers at the top level, so its impact has not been widely spread. A glaring example of this is the lack of proper insurance for millions of government property damaged in the Geneji movement. <\/p>\n<p>There is a lack of long-term vision even while formulating insurance policies in Nepal. Insurance should be seen as an important basis of economic development, but it is still seen only as a subsidiary sector. If the policy of promoting insurance compulsory and effectively is brought from the government level, then the trust of the citizens can also increase automatically. <\/p>\n<p>However, this is not to say that the government is completely indifferent. For example, even today, the Government of Nepal has a life insurance premium of Rs. Even though the government has come up with a policy of giving tax rebate of up to Rs 40,000, even the high-ranking people of the country and the reference groups of business positions earning good income are ignoring it. <\/p>\n<p>They are not so sure about the invisible benefits of insurance. After insuring, some compensation must be taken and a share of the profit must be taken after paying the premium on the insurance and the development of investment only thinking rather than a means of risk transfer to the insurance has also shrunk its continuity by the customers themselves. On the other hand, the lack of awareness of assimilation is also a big problem. <\/p>\n<p>Even among educated and high-ranking people, there is a lack of accurate information about insurance. If they do not use insurance themselves or acknowledge its importance, it will not have a positive impact on the people at the lower levels. This creates an atmosphere of distrust and confusion towards insurance. Insurance companies themselves also need to improve the quality of service. <\/p>\n<p>As the Nepalese insurance market is in a nascent phase, bringing transparency and simplicity in the claim payment process can further increase public trust. As long as the customer does not get easy and fast service, it is difficult to change the negative perception towards insurance. <\/p>\n<p>The solution requires a change in thinking from the top level first. Policy makers, government officials and leaders of the society should understand the importance of insurance and put it into practice. Positive change in the long term is possible if insurance education is included from the school and college level. <\/p>\n<p>Ultimately, there is a need to make possible efforts to expand the understanding of insurance in Nepal. When insurance is given priority from the top, then its right message can reach every level of the society. The need of the hour is to develop the mindset that insurance is not just an expenditure, it is an opportunity, a security for the future and a proper financial means of managing risk.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Santosh Acharya Although the insurance sector is expanding in Nepal, the overall understanding of it is still limited and narrow. The state of Nepalese society shows the harsh reality that the importance of insurance has not been fully understood by the policy-making level, administrative leadership and influential sections of the society. As a result, there [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":291994,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45031,45159,45156],"tags":[],"class_list":["post-292073","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banner-news-en","category-news-en","category-blog-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/292073","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=292073"}],"version-history":[{"count":1,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/292073\/revisions"}],"predecessor-version":[{"id":292074,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/292073\/revisions\/292074"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/291994"}],"wp:attachment":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=292073"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=292073"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=292073"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}