KATHMANDU, Feb 23: Finance Minister Dr Yubaraj Khatiwada has said that the government will take stringent action against those insurance companies which are failing to pay compensation to customers on time.

Addressing the 53rd anniversary of Rashtriya Bima Sansthan in the capital on Sunday, Minister Khatiwada claimed that the insurance companies have been troubling the insured by not paying the claim amount on time. He also stressed the need for service-oriented insurance companies providing customers with compensation on time.

Likewise, he also urged insurance companies not to focus their businesses only in some big companies and customers. Rather, he suggested them to reach out to small companies too.

Speaking further, he also informed that the government has introduced a health insurance policy for an economically weak citizens with free premium amounting to Rs 1 00,000. "Last year only, the government had spent Rs 2 Billion to execute that policy."

Likewise, Chairman of Insurance Board Chiranjibi Chapagain viewed that good governance and risk management are the two most important aspects for insurance companies. Furthermore, he mentioned that his office has been doing its best to introduce risk-based capital and inspection from the upcoming fiscal year 2020/21.

Chapagain has also urged the government to carry out long-awaited auditing of Rashtriya Bima Sansthan and other insurance companies.

 
• insurance_companies
 
• compensation
 
• fraud
 
• customers.