Narayangarh: The government should encourage people to take insurance policies by offering an increased concession on income tax, for having opted for life insurance. With the growth in the number of policyholders, the government can have access to a sustained stream of cash resources. Further, the forthcoming budget should concentrate on effective and profitable investment of the money being collected through life insurance premiums. It can be used for infrastructure development of he country. The budget should also make arrangements so that even poor persons can have some sort of insurances, particularly when there is no social security net in place. The government should insure government employees or at least pay a certain per cent of the premium to ensure the economic future of employees. The VAT being imposed on general insurance should be removed from this budget.
Bharat Malla, senior development officer, National Life and General Insurance
Biratnagar: Insurance business has become more complex from a commercial point of view. The 13 per cent VAT imposed on insurance should be removed. As the number of insurance companies is mushrooming, the government should control the registration of new insurance companies to keep sanity in the field. The government should also bring in programmes to create greater awareness among people to take up insurance policies through the upcoming budget. Insurance companies, which do not follow the tariff structure issued by the insurance committee, must be punished legally. Also, insurance companies are found to have insured vehicles against the standard tariff set by the insurance committee. Therefore, government should bring in programmes to commercialise the insurance business. Also, in vehicle insurance, the provisions in case of a death or injury to a person in a vehicular accident should be increased.
Laxmi Kumar Shrestha, Premier
Insurance Company (Nepal) Ltd
Bhairahawa: Currently, the investment possibilities in the insurance sector are very narrow. Making liberal policies in order to boost investment is required. The upcoming budget should remove VAT on life insurance policies to make them more affordable and interesting. Insurance of public vehicles should be made compulsory for the safety of users as well as for the health of the insurance industry. Life insurance policy for employees should also be made compulsory. Subjects relating to insurance should be included in academic curriculum. Greater awareness programmes about insurance policies and the benefit of insurance in general, should be conducted in rural regions as well. The insurance committee should organise interaction programmes outside Kathmandu to be participated by insurance agents and insurance policy owners so that everyone gets clear information about insurance policies. The market needs to explore large potential beyond Kathmandu.
Sujit Sharma, Agency Manager, LIC Nepal, Bhairahawa
Make it mandatory
Banepa: After the formation of budget drafting working committee, with the involvement of representatives of Nepal Chamber of Commerce, seven political parties, the Maoists, civil society and all the concerned sectors, the upcoming budget should be prepared for the welfare of the nation. The budget will be appropriate for the overall development of the nation because of the involvement of all sides in the committee. The budget should be based on a national consensus. Similarly, the upcoming budget should focus mainly on agriculture, health and education sectors. It will be more effective if there is enough focus on management and supervision of policies. The government should launch a one-house one-insurance policy, to extend the insurance service throughout the nation. This in turn will boos the insurance sector as well. Once this is done, the life insurance sector will flourish. It will also create employment opportunities for many people.
Raju KC, chief, Nepal Life Insurance Company Ltd