Rastriya Swatantra Party MP Lima Adhikari Questions Insurance Sector Irregularities and Regulatory Authority's Capacity

Kathmandu. Rastriya Swatantra Party MP Lima Adhikari has raised questions about the irregularities rampant in the insurance sector and the regulatory capacity of the Nepal Insurance Authority. Speaking at the meeting of the Finance Committee under the House of Representatives on Tuesday, MP Adhikari expressed suspicion that there might have been financial irregularities in the distribution of licenses and merger processes of insurance companies.

She stated that even with 37 companies operating in Nepal, a small economy – 14 life, 14 non-life, 7 micro-insurance, and 2 re-insurance – insurance penetration remains low. Presenting data that only 44 percent of the total population is covered by insurance, even when including those working abroad, and 56 percent of citizens are still outside the reach of insurance, she questioned the effectiveness of the Authority.