Irregularities Found in Kathmandu-Terai Fast Track Insurance; Non-Life Insurers Under Scrutiny

Kathmandu — Irregularities have been detected in the insurance arrangements for the Fast Track project being constructed to connect the capital with the Terai-Madhesh region. Following these findings, Nepal’s insurance regulator, the Nepal Insurance Authority, has initiated closer monitoring of the involved non-life insurance companies.

The Authority launched an investigation after discovering that the insurance had been arranged in ways that deviate from standard policy provisions and legal requirements. Reports indicate that more than a dozen non-life insurers may have acted in coordination, raising concerns of possible collusion in handling the Fast Track insurance.

After receiving this information, the regulator placed the companies responsible for insuring the project under surveillance. It has already sought clarifications from the insurers involved and warned that legal action will follow if satisfactory explanations are not provided, according to a high-level source.

Officials also indicated that if it is proven that insurers acted outside policy guidelines and caused harm to the insured party, action will be taken in accordance with the law.

Given the scale of the Fast Track project, its insurance coverage is substantial and has been distributed among multiple non-life insurance companies. The regulator suspects that the similar nature of the alleged misconduct across several insurers could point to coordinated actions.