Kathmandu – The government has made a significant decision to insure government buildings and vehicles, a move expected to protect state assets from unforeseen losses.
On October 5, the Cabinet approved a policy making insurance compulsory for government offices and vehicles, which had previously been left unprotected.
The Ministry of Finance announced that this decision came in response to the significant financial burden the state has faced due to the lack of insurance coverage. Natural disasters, political movements, and riots in the past have caused considerable damage to government offices, and without insurance, the state has had to bear the full cost of repairs and restoration.
Despite repeated recommendations from the Nepal Insurance Authority, the government had not moved forward with implementing insurance for state properties. This new decision ensures comprehensive (non-life) insurance coverage for government vehicles, which were previously only covered under third-party insurance.
Additionally, the government has stated that a budget allocation will be set aside to accommodate the cost of these insurances. The move marks the first time in Nepal’s history that insurance for government buildings will be mandatory.
A striking example of the need for this policy came during the protests on August 23 and 24, when several government offices and public buildings were vandalized and set on fire. Key government properties like Singha Durbar, Sheetal Niwas, the Parliament Building, and the Supreme Court were severely damaged. If these buildings had been insured, the state would have had some financial relief for repairs. Instead, the full cost of reconstruction fell on the state’s treasury.
The 2015 earthquake also highlighted the vulnerability of government buildings, but it wasn’t until recent events that the urgency for such insurance became clear. Rameshwar Prasad Khanal, who was the Finance Minister during the interim government, welcomed this new decision, calling it a positive and necessary step forward for the country.
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