Kathmandu. The budget and programmes announced by the government for the fiscal year 2082/83(2025-26) include various programmes ranging from expansion of access to insurance in rural areas to restructuring of health insurance programmes.
Deputy Prime Minister and Finance Minister Bishnu Poudel presented the budget and program before the federal parliament on Thursday. The government has planned to expand the insurance penetration through policy change instead of spending huge amount of money for the program execution.
Expanding access to insurance companies in rural areas:
The government has said that insurance companies will be directed to expand access to rural areas.
Restructuring of health insurance:
The government has announced that the Health Insurance {rogram(HIP) will be restructured. The benefits bucket of the insured will be gradually increased and the social health protection program will be integrated into the HIP.
The insured will be provided the facility of opting for different health insurance plans and duplication of the benefits will be eliminated to prevent misuse of insurance facilities. In the HIP, leakage through fake claims will be controlled and institutional good governance will be maintained.
Insurance facilities of senior citizens, marginalized communities(dalits), extremely poor and disabled minority communities will be provided continuously.
The government has allocated NPR 10 billion for the HIP. Arrangements will be made to pay the pending payment claim amount in this fiscal year after examining the third party.
Smallholder farmers’ access to agricultural insurance:
Access to small and medium farmers will be expanded in the agriculture and livestock insurance program. A budget of NPR 2.3 billion has been allocated for the subsidy on child and animal insurance premium, he said.
Reinsurance of deposit and debt protection fund
For the first time, the government is going to make arrangements for reinsurance of Deposit and Credit Guarantee Fund(DCGF). Nearly five decades after the establishment of the Fund, the government is going to make a reinsurance arrangement to transfer the risk of the fund.
Expand scope of property insurance:
The scope of property insurance will be expanded to protect the damage caused by natural disasters and accidents. The service will be operated through cyber security insurance.
Institutional reform of government insurers:
Minister Poudel said that institutional reforms of state-owned two insurers, Rastriya Beema Company and Rastriya Jeevan Beema Company, would be carried out. Among them, the National Insurance Company is listed in NEPSE while Rastriya Jeevan Beema Company is not listed in NEPSE.
Exemption on taxable income remains the same:
However, the deductible amount from taxable income for life insurance premiums remained unchanged. At present, up to NPR 40,000 of premiums can be deducted for taxable income. Property insurance premiums upto NPR 5,000 and health insurance premiums up to NPR 2,500 on health insurance is deductible from taxable income.
