Insurance Budget 2082/83: Government Prioritizes Health and Agriculture Insurance, Omits Broader Regulatory Reforms

Kathmandu – The government’s budget for the fiscal year 2082/83 has placed emphasis on health and agricultural insurance programs, while broader reforms in the insurance sector and legislative changes concerning the Nepal Insurance Authority were not addressed.

During the budget announcement, Finance Minister Bishnu Prasad Paudel stated that the government will prepare a plan to encourage insurance companies to expand their services to rural areas. The plan is aimed at insurance providers that have remained focused primarily on urban populations. The government also intends to direct companies that do not comply with the guidelines set by the Nepal Insurance Authority to align their operations accordingly.

The budget document highlights the government’s intent to strengthen agricultural insurance. A total of Rs 2.3 billion has been allocated for agricultural and livestock insurance, with the aim of increasing access among farmers. The government has proposed to attract youth towards agriculture by developing a supportive ecosystem that includes land, inputs, insurance, purchase agreements, and access to markets.

In the health sector, Rs 10 billion has been allocated for the continuation and improvement of the national health insurance program. The program will be restructured to expand its coverage and implement legal provisions more effectively. The government plans to integrate certain social security elements into health insurance and include essential medicines to reduce the financial burden on insured individuals. Additionally, unpaid insurance claims will be verified by a third-party review process within the fiscal year.

The budget also mentions plans to manage the reinsurance of the Deposit Credit Guarantee Fund. Two state-owned insurance companies, the Rastriya  Beema  Company and Rastriya Jeevan Beema Company, will be managed under new arrangements, although details have not been disclosed.

There are also provisions for expanding the scope of property insurance to cover damages caused by natural disasters and accidents. Furthermore, the government has proposed introducing cyber security insurance to support secure service delivery in the digital sector.

While the budget contains several insurance-related initiatives, especially in agriculture and health, it does not include new legal or structural reforms for the Nepal Insurance Authority. Programs such as microinsurance, which have received recognition in government surveys for their outreach to rural populations, were not allocated specific new support measures.