The Far Western Province has put forward the concept of 'disaster risk insurance' to financially transfer the losses caused by disasters. Although 50 million rupees were allocated for insurance in the last fiscal year and 10 million rupees in the current fiscal year, it could not be spent due to lack of working procedures.

According to the Ministry of Internal Affairs and Law, disaster risk insurance will be launched in the coming fiscal year after passing the working procedures. However, despite the province's delay in making the working procedures, some local levels have already taken spontaneous steps. Belauri Municipality of Kanchanpur has taken an important and exemplary step to minimize the loss of life and property due to floods and inundation.

The municipality has started the 'disaster risk insurance' program for locals who are affected by the floods of the Doda and Mahakali rivers every year. The municipality has already made the working procedures related to insurance in 2081.

This program is specifically targeting the risky settlements of Ward Nos. 2, 5, 6, 8 and 10, where the houses and movable and immovable property of the citizens will be insured. Ashok Pandey, the municipality's disaster contact person, said that the process has been taken forward with the national insurance company by paying the premium with its own resources and the support of the provincial government.

Belauri has requested Rs 710,500 from the Ministry of Internal Affairs and Law to assist the municipality in disaster risk insurance. The ministry is also positive about this demand and internal discussions are underway on how to provide the amount to the municipality, said Komal Prasad Ojha, Deputy Secretary, Chief of the Planning and Administration Division of the ministry. He said that this step by the municipality will not only reduce the financial burden during disasters but also spread awareness among the citizens that they should insure their property.

Meanwhile, Kailali's Tikapur Municipality has taken a new step in disaster risk reduction by passing a procedure and starting 'parametric insurance' (indicator-based insurance) in the last fiscal year.

It ensures hassle-free payment of money to the affected people as soon as damage occurs based on the river flow in the coastal area of ​​the Karnali River and the estimate of the potential damage it can cause. This amount is paid by the insurance company, not the province or Tikapur Municipality.

The Ministry's Deputy Secretary Ojha says that if disaster victims can be included in the insurance program in this way, the huge expenditure burden of the state will be reduced. 'The state spends billions of rupees every year only for temporary housing. Even if the property of the affected people can be insured, the huge financial burden of the state is transferred to the insurance company for a small amount of money,' he said. This will save the state treasury and that money can be spent on other social sectors like education and health, he says.

Another municipality in Kanchanpur, Dodhara Chandani, is preparing a disaster risk insurance policy. In Dodhara Chandani, the Mahakali and Jogbuda rivers cause annual damage to the settlements along the banks.

Even though floods cannot be stopped, a disaster risk insurance program is being implemented to reduce the damage and reduce the financial burden of the municipality. For this, coordination is being done with the insurance company, the provincial government and the Water and Weather Forecasting Division, says Amrit Bik, the municipality's disaster contact person. According to him, after the Weather Forecasting Division studies the river level and issues a report on how much it will affect which communities, insurance will be provided as per the need.

The policy will be passed within this Baisakh and the insurance will be implemented from the monsoon, said Bik, the disaster contact person. The municipality had discussed this program with the affected locals and sought their opinions and suggestions. Similarly, Khaptadchanna Rural Municipality of Bajhang is also preparing to formulate a procedure.

Only 20 percent of citizens have access to insurance

Access to insurance is low in the Far West. Currently, only about 20 percent of the province's citizens have access to insurance. Which is much lower than the national average of about 50 percent. To increase this, an awareness program is being conducted through schools, local level people's representatives and women's groups, according to the Nepal Insurance Authority, Far West.

Karnali and Lumbini provinces have already implemented a disaster insurance program for their citizens, with the government paying the premium for accident and home insurance. The impact of this has been good. Based on the experience of those provinces, preparations are being made to move the disaster insurance program forward in the Far West as well.

Kedarnath Bhatta, the Far West Province Chief of the Insurance Authority, says that this program launched 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, agriculture and livestock insurance, and home insurance should be prioritized according to the geographical conditions of the Far West. ‘Insurance is very necessary as the Far West is an area at risk of various disasters. Insurance can play an important role in reducing the huge economic losses after a disaster,’ he said.

Various non-governmental organizations 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, funded by the European Union, in collaboration with People in Need, Community Self-Reliance Service Center, Save the Children, and Scott Wilson Nepal.

Under this project, the Ministry of Internal Affairs and Law recently held a ‘Disaster Risk Insurance/Regional Workshop between the Province and Local Levels’. In which public representatives from 12 municipalities of Bajhang, which are at high risk of disasters, participated. The workshop discussed how disaster-affected local levels can be brought under the insurance coverage.