Kathmandu. In terms of both population and population density, the province of Madhes, which is at the top of the seven provinces, is almost at the bottom of the insurance business.
Madhes’s contribution to life insurance premium income is limited to 8.83 percent. Although it is more remote than Karnali and SudurPaschim provinces, it is less than the remaining four provinces of Bagmati, Koshi, Lumbini and Gandaki provinces.
According to Nepal Insurance Authority, the current fiscal year 2081. In the first 10 months (up to Mid-April), life insurance has collected a total of Rs 140.35 billion in insurance premiums. Out of this, only Rs 12.4 0 billion has been collected from Madhes.
In comparison to the number of active insurance policies, there are a total of 616,699 active insurance policies in Madhes province. A total of 15,306,993 active insurance policies were issued by life insurers as of Mid-April. Madhes has only 4.03 per cent share in terms of number of active insurance policies.
Based on the total number of insurance policies issued by non-life insurers, Madhes province has issued 10.83 percent insurance policies. According to the NRA, 288,772 insurance policies have been issued from Madhes. Similarly, non-life insurers have collected a total of Rs 2.37 billion from Madhes province. This is only 6.62 percent of the total insurance premium collected by the non-life insurer till mid-April of the current fiscal year.
Madhes province tops the list in terms of population and population density. According to the National Census 2078, the population density of Madhes is 633 per square kilometer. This is three times higher than the national average. The national average population density is 198.
Madhes province is at the bottom in terms of per capita income despite being at the forefront in terms of population. The per capita income here is $932. This is two-thirds lower than the national average of $1,496.
Kusum Sharma, former Deputy Director of Insurance Authority, who closely follows the insurance sector of Madhes Province, has pointed out the following reasons for not increasing the access of insurance compared to the population in Madhes Province in the article on the status of insurance in Madhes Province:
1. Lack of awareness,
2. Low income level,
3. Insurance companies not reaching villages, being city-centric,
4. Lack of coordination between insurance companies and local municipalities,
5. Not being able to explain the importance of insurance,
6. Lack of thematic knowledge even among the employees of the insurance company, including insurance agents,
7. Not properly informing the insured about the conditions mentioned in the policy at the time of insuring,
7. Lack of skilled manpower in the insurance sector,
8. Do not contact the agent again for after-sales service after insuring,
9. In the event of a claim, the insured should not receive the necessary assistance (in respect of documents) from the insurer,
10. Claim payment process not simplified,
11. Delay in claim payment process (centralized),
12. Insurance companies should not delegate authority to their branch offices,
13. Not getting the claimable amount.
