The provincial government has put forward the concept of 'disaster risk insurance' in the Far West, which is at risk of disasters. For this, the provincial government has intensified discussions on the draft of the working procedure.

The Far West government has been allocating a budget for disaster insurance since the fiscal year 2080/81. Last year, a budget of 5 million was allocated, which has been increased to 10 million in the current fiscal year. However, this amount has not yet been spent due to the lack of working procedures.

According to Komal Prasad Ojha, Deputy Secretary, Planning and Administration Division, Ministry of Internal Affairs and Law, life insurance was given priority in the draft of the working procedure for disaster insurance.

He said that since the Far West has different mountain, hill and plain structures, the need for agriculture, accident and group insurance varies by region, so discussions are underway to revise the draft. He said that since floods destroy crops in the Terai, it is necessary to give priority to agricultural insurance and life and property insurance in the hilly areas.

He said that the discussion on the draft concluded that other sectors should also be included in the insurance. Deputy Secretary Ojha said that the new draft is being finalized soon and the working procedure is being passed within the current fiscal year. According to him, in the initial phase, the provincial government has planned to pay the insurance premium of high-risk and economically disadvantaged groups.

The hilly areas of the Far West are prone to high risks of earthquakes, landslides, lightning and fires, while floods and inundations in the Terai have affected thousands of families. Now, changing the practice of deploying for rescue and relief after a disaster, a new strategic plan is being put forward by prioritizing ‘forecast-based work’ and ‘disaster-sensitive social security,’ said Naveen Bhandari, Disaster Management Coordinator of the Provincial Emergency Center.

He said that both these concepts are being incorporated in the disaster preparedness and response plan currently being prepared by the province. He said that the provincial government has also put forward the concept of disaster risk insurance to make this process sustainable.

Only 20 percent have access to insurance
Access to insurance is low in the Far Western Province. Currently, only about 20 percent of the citizens of the province have access to insurance. Which is much lower than the national average of about 50 percent. To increase this, the Nepal Insurance Authority is conducting awareness programs through schools, local level people's representatives and women's groups, according to the provincial office.

Karnali and Lumbini provinces have already implemented a disaster insurance program where the government pays the premium for accident and home insurance for their citizens. Based on the experience of those provinces, preparations are underway to advance the disaster insurance program in the Far West as well. Kedarnath Bhatta, the Far West Chief of the Insurance Authority, says that this program started in Karnali has been very effective. Now, he says, the Far West should also learn from Karnali and expand the disaster insurance program.

Bhatta suggests that group accident insurance, agricultural and livestock insurance, and home insurance should be prioritized according to the geographical conditions of the Far West. ‘As the Far West is an area at risk of various disasters, insurance is very necessary.’ He said that insurance can play an important role in reducing the huge economic losses after disasters.

Various NGOs are also collaborating and providing technical assistance to the provincial government in the disaster risk insurance program. Among them, there is a committed project in the Far West, in collaboration with People in Need, Community Self-Reliance Service Center, Save the Children and Scott Wilson Nepal, with financial support from the European Union.