Kathmandu. A pleasant change has been seen in the financial scenario of Nepal. According to the latest statistics of the Nepal Insurance Authority, the number of active life insurance policies in the name of women is more than that of men.
As mentioned in the second strategic plan of the NEA, the share of women in the total active insurance policy has reached 50.96 percent. While the share of men is limited to 49.04 percent. However, experts argue that this figure does not yet represent the full economic empowerment of women.
The main reason for the high number of insurance policies in the name of women is the strong network of microfinance and women savings groups in Nepal. Microfinance institutions provide mandatory term life insurance to the borrower members, who are mostly women, while issuing loans.
On the other hand, since these policies are primarily meant for debt protection, they do little to achieve a woman’s long-term personal financial security and wealth growth.
New Effort: Women’s Safety and Maternity Benefits
Keeping in mind the specific needs of women, new and innovative schemes have started coming in the insurance market. Nepal Life Insurance Company has introduced a new policy called Nari Suraksha Life Insurance Insurance. This is the first time in Nepal’s insurance history that maternity protection has been included. Prior to this, life insurance scheme was not available for pregnant women in the Nepali market.
This insurance scheme aims to combat inflation by increasing the sum insured by 25 percent every five years for 11 types of complications during pregnancy and 11 major health problems after delivery. In addition, women between the ages of 18 and 65 can participate in this scheme, which prioritizes both savings and safety.
Existing challenges and lack of data
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Although women are at the forefront of the data, women’s access to decision-making and high-actuarial plans is still low.
Financial Literacy The female literacy rate of only 55.115 makes it difficult to understand complex insurance terms. Women have less access to big-investment insurance schemes due to low ownership of property and land. Gender Statistics So far, the lack of clear data on the basis of gender in the insurance sector has made it difficult to formulate women-friendly plans.
According to Pujan Dhungel, director and spokesperson of the Insurance Authority, it will now be made mandatory for insurance companies to collect data on the basis of gender. “It is not possible to investigate what kind of protection women need in which areas without data,” said Dhungel, adding, “It will be a milestone in building a women-friendly insurance market after gender data becomes mandatory from coming July.” ’
