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MoCTCA stalls proposal to slash medical insurance, rescue fees levied on expedition teams

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KATHMANDU, Dec 16: Ministry of Culture, Tourism and Civil Aviation (MoCTCA) is stalling proposal forwarded by the Department of Tourism (DoT) for reducing medical insruance and rescue fees levied on mountaineering expeditions.

The department had proposed to the ministry to reduce rescue and insurance fees in an attempt to revive mountain tourism in Nepal which has been battered by series of untoward incidents. The ministry has also not taken any decision on a proposal to extend validity of climbing permit taking during the time of earthquake by two years. The department had submitted a proposal to this effect to the ministry a month after the April earthquake.

In the first week of December, DoT had submitted a proposal MoCTCA, recommending it to reduce rescue insurance fee for 188 peaks below 6,500 meters by 60 percent. The department has argued that there is no need to imposed high rescue insurance fee as these peaks are not risky to climb and groups are comparatively smaller.



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"We have proposed to reduce rescue insurance fee for mountains below 6,500 meters to US$ 4,000 from $10,000 per expedition," Gyanendra Kumar Shrestha, an official with DoT's Mountaineering Division, said.

Similarly, the department has proposed reducing medical insurance amount for workers by 25 percent to $3,000. The department has proposed reducing medical insurance fee for base camp workers by 50 percent to $1,000.

"We had proposed these measures for revival of mountain tourism as the sector has been facing problems for three consecutive years. This will not have much impact on revenue collection as mountains below 6,500 meters are not much-sought after climbing destinations," added Shrestha.

An official of tourism ministry also said decision on proposal forwarded by the department has to be taken immediately.

The department hasn't proposed any change in life insurance of mountaineering workers. Expedition teams must buy life insurance policy of $15,000 for workers climbing above base camp, $8,000 for base camp workers, and $5,000 for local porters.

"As our recommendations will not impact much on revenue mobilization, we are hopeful that the tourism ministry will take decision soon," Govinda Bahadur Karki, director general of DoT, said. He also said the ministry has sought the department's opinion on why the permit fee has to be extended by two years.

"As we have already furnished our opinion, we are hopeful that the ministry will take decision soon," he said, adding that the ministry has asked the department to make working procedure for reduction in rescue and medical insurance amount. "We will prepare the working procedure and submit it to the ministry within two weeks," he added.

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