Insurance Authority Steps In as Government Fails to Insure Its Buildings

Kathmandu — Despite repeated commitments made through national budget speeches and policy declarations, the government has yet to insure its buildings — including historic administrative centers like Singha Durbar. With this gap continuing for years, the Nepal Insurance Authority has now taken the initiative to address the issue by preparing plans to insure government-owned structures across the country.

Although the government has consistently emphasized the need for mandatory insurance of both public and private buildings, this objective remains unfulfilled. Even as it urges the general public to adopt property insurance, the government itself has not followed through on insuring the very structures it owns and operates from.

According to the Department of Urban Development and Building Construction, there are an estimated 5,500 government buildings across Nepal. However, officials acknowledge that the data is not complete or up to date. A lack of technical manpower and fragmented coordination across departments have hindered efforts to gather accurate records of government-owned infrastructure, including their construction value and insurance needs.

The Nepal Insurance Authority has expressed concern that the absence of insurance on government property undermines broader efforts to promote property insurance among the public. “Unless the state sets an example by insuring its assets, it is difficult to convince citizens of the importance of property coverage,” said officials at the Authority.

In response, the Authority is now collecting structural data from various government bodies to develop a comprehensive insurance blueprint. It has formally requested details of government buildings from the Department of Urban Development and Building Construction, with plans to assess potential risks and coverage requirements once the data is compiled.

Deputy Secretary at the Department, Ram Prasad Acharya, noted that while newly constructed government buildings typically include insurance in their tender proposals, challenges remain in tracing older buildings. He also confirmed that his office has not yet received any formal communication from the Authority, though coordination may be ongoing at the ministerial level.

The Authority’s forthcoming blueprint will assess risks and coverage for various government assets, with plans to implement insurance policies that address damages from fire, water, land movement, lightning, explosions, and other potential hazards. Under standard procedures, most property insurance policies take effect 35 days after issuance.