Kathmandu. Insurance awareness has not yet expanded in Nepal. Still, the negative perception that insurance is seen as a wasteful expenditure has not been removed.
Insurance companies and Nepal Insurance Authority (NEA) have been organizing various insurance awareness programs. There is also a provision that the authority has to spend a part of its annual income for insurance awareness. Agents (mediators) are doing their best to create insurance awareness.
The Insurance Authority has recently released the draft of Insurance Literacy Framework-2083. It also points out the role and responsibility of the authority, insurance companies and intermediaries for insurance literacy.
Insurance literacy is primarily a confluence of insurance knowledge, insurance skills, insurance attitudes, and insurance behavior. Insurance attitudes and behaviors play a big role in this.
Insurance attitude
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Insurance attitude is defined as a person’s attitude, belief, and state of thinking towards insurance, risk, and financial security. It is the mental attitude of a person who looks at insurance beyond knowledge and skills. It involves a positive mindset to accept insurance as a safety net and investment to reduce future uncertainty and risk rather than as an unnecessary expense or compulsion.
A positive insurance attitude is to have a positive attitude towards the insurance company and the entire insurance system, to be aware of the potential risks, and to be willing to be financially secure. It is this inner thinking and belief that motivates him to get information about insurance and eventually come to the decision to buy insurance.
Insurance Transactions
Insurance behavior is a practical action or decision that applies knowledge, skills, and a positive attitude to real life. How financially secure a person is can be measured by the behavior of insurance. Therefore, it is the most visible and measurable pillar of insurance literacy.
This includes buying the right insurance policy by assessing one’s own risk and that of one’s family, continuing the policy by paying the premium on time, and following the right process when the need to make a claim. Also, to be aware of your rights and obligations and to make insurance a part of your daily financial plan to avoid financial crisis is a positive insurance behavior. In this way, the insurance practice is the transformation of insurance awareness and thinking into real action.
