MP Kandell Raises Concerns on Insurance Sector Issues

Kathmandu. Opposition party CPN (UML) lawmaker Pushparaj Kandell has drawn the attention of the government and concerned bodies to the various problems existing in Nepal's insurance sector. 

Speaking at a meeting of the Finance Committee held on Tuesday, lawmaker Kandell raised questions about the current state of the insurance industry, transparency, legal complexities, and the issue of COVID insurance payments.

In the meeting, lawmaker Kandell demanded that the financial status of the 37 insurance-related organizations operating in Nepal be made public. He questioned the status of the profit-loss and 'margin' of these organizations, stating that a detailed analysis is necessary to understand the overall condition of the industry. 

Regarding the plan to fully digitalize the insurance sector, he suggested that the reality of Nepal's digital literacy and rural access should be considered. He objected to the delay in the auditing of government-owned insurance companies. 

Although some improvement has been seen in the past practice of not auditing for a long time, he argued that it is a serious matter that 3 to 4 years of auditing are still pending. He urged for seriousness in this regard, stating that the lack of timely auditing raises suspicions of financial irregularities.

Speaking at the meeting, he said, 'Considering the current level of digital literacy and the reach in villages, relying solely on technology might shrink insurance access.' Therefore, he stated that the current paper-based system should be continued for some time to ensure access down to the grassroots level.

Similarly, he also expressed concern about the problems in operational performance due to the conflict in existing laws and regulations related to the insurance sector. He said that if clear information is obtained about which laws are causing obstacles, cooperation can be provided through parliamentary process. Lawmaker Kandell also raised questions about the lack of Nepal's internal risk assessment capacity and its dependence on external sectors.