Kathmandu – The importance of access to insurance extends beyond mere awareness; it reflects the broader financial literacy of a nation. While the government has set targets to increase insurance coverage among the population, these goals have not been fully realized. According to recent government data, 43.56 percent of the population is currently covered by some form of insurance. This coverage rate has slightly declined by 0.18 percent compared to the previous fiscal year when it stood at 43.64 percent.

One factor contributing to the insurance coverage in Nepal is the mandatory insurance for those seeking foreign employment. However, the fact remains that more than half of the population remains uninsured. The lack of trust in insurance companies, driven by rumors of unpaid claims, further hampers the expansion of insurance coverage.

Perspectives from the Public:

• Anisha Bogti, a higher education student, believes that insurance is vital for life. Her family’s involvement in insurance introduced her to the concept, but she feels that the education system in Nepal does not adequately cover the need and importance of insurance. She suggests that insurance should be included in the curriculum to raise awareness among students.
• Bunu Thapa, a teacher, shares that she holds multiple insurance policies and emphasizes that everyone should have insurance due to the inherent risks in life. She argues that insurance companies need to take more proactive steps, such as visiting schools to educate students about insurance, which could positively impact participation in the insurance sector.
• Krishna Maya Lama, who is learning sewing, views insurance as essential for mitigating unexpected health risks and securing financial stability. She considers insurance as a form of savings, allowing individuals to save gradually and receive a lump sum when needed. Lama advocates for insurance as a necessary tool for financial security.
• Admission Readers, students, echo the sentiment that public awareness is lacking, particularly among those who are illiterate or less informed. They believe that the expansion of insurance access is hindered by the lack of clear information about insurance policies, especially among older and less educated individuals.

In conclusion, while insurance coverage in Nepal has made some progress, there is still a significant gap in reaching the entire population. Efforts to increase financial literacy, particularly regarding insurance, could play a crucial role in closing this gap and ensuring that more people understand and benefit from insurance.