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Government to Self-Implement Health Insurance Program

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Government to Self-Implement Health Insurance Program
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June 17: The Ministry of Finance is preparing to implement Social Health Security Program started by the government by itself. The move has triggered the doubt about the success of the program if it is not implemented through commercial insurance companies. The government has allocated Rs 2.50 billion budget for the program of upcoming FY. Insurance companies, meanwhile, opined that if the government implement the program, it will not be sustainable.

Ministry of Finance is preparing to conduct the program in 25 districts through formulating social security development committee. However, insurance companies that were expecting to carry out the program are dissatisfied over the government’s move. “Government has many responsibilities, direct participation of the government in the insurance business does not suit and sounds silly,” says Bijay Bahadur Shah, Chairman of Insurance Association and CEO of NLG Insurance. “As insurance is a medium of risk transfer, it will be sustainable and effective, if it is done through commercial mechanism,” he argues. “As insurance companies have large fund to mobilise and mechanism of risk transfer, high rate of return could be gained from low investment,” he claims. Shah says that the program which is carried out as grant distribution could not give sustained insurance benefit to citizens.

Similarly BK Maharjan, CEO of Prudential Insurance says “Commercial Insurance companies are marching for the program hoping increment in scope and number of insurers. We have eagerness, efficiency, mechanism and manpower to implement the program effectively. Thus, the government should provide the responsibility to us.” In the meantime, Shah informs that all insurance companies along with Nepal Re-insurance Company are holding discussion about establishing a separate micro-insurance company in order to carry out such micro-insurance program.

 

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