Public Infrastructure to Be Insured

Kathmandu — Public infrastructure will now be covered by insurance. The provision has been introduced through an amendment to the Insurance Act, included in a bill aimed at revising several Nepal laws.

Until now, the absence of insurance for public infrastructure meant that the government had to bear the full cost of any damage to such assets.

The need for this measure was first emphasized after the 2015 Nepal earthquake, which caused widespread damage to public property.

It became even more pressing following damage to public assets during protests on September 8 and 9, when the financial burden of reconstruction once again fell on the government.

According to Sushil Dev Subedi, Executive Director of the Insurance Authority, existing insurance schemes did not cover public infrastructure, but the new provision will address this gap.

The bill states that insurance arrangements for public infrastructure projects will be implemented as prescribed.

With the amendment to the Insurance Act, the Insurance Authority will also develop the necessary regulations.

The new provision further ensures that a Joint Secretary from the Ministry of Physical Infrastructure will be represented on the Authority’s Board of Directors.