By A Staff Reporter, Kathmandu, Feb. 21:  Finance Minister Dr. Yuba Raj Khatiwada Sunday said that the government would provide free insurance facilities to the extremely poor people.

“Around 1.6 million households live below the poverty line in the country, so, the government will pay the health insurance premium on their behalf,” Dr. Khatiwada said while addressing the 53^rd anniversary of Rastriya Beema Sansthan.

“Under the health insurance campaign of the country, one can claim Rs. 100,000 at present with a premium of Rs 3,500,” he said.

“The government will spend the collected tax for uplifting the livelihood of poor people. If the capable people do not pay tax, how can the government spend for poor people? So, I, as a Finance Minister, am strict in the issue of tax collection,” he said.

Stating that around 22 per cent people had been covered under insurance scheme so far, he stressed the need for expanding the insurance net to include more people.

“Insurance is a contribution-based social security. So, the concept of social security scheme of the government will be meaningful if more people are brought under insurance scheme,” he said.

The government has adopted a policy for structural reform in the insurance provider institution, systematic reform and operate the mobile insurance programmes to expand social security by extending people’s access to insurance, he said.

He pointed out the need for diversification of reinsurance to minimize the risk.

Minister Dr. Khatiwada urged the insurance companies to introduce the insurance package targeting the modest, marginalised and poor people.

Stating that Rastriya Beema Santhan is an old institution, he said that it should run with modern structure by adopting the new technologies as real time claim settlement was a must to win the confidence of people towards the insurance sector.

Chairman of Beema Samiti Chiranjibi Chapagain said that the Rastriya Beema Sansthan should move ahead with the strategic plans to be competitive in the insurance market.

Chairman of Board of Directors of Rastriya Beema Sansthan Ganga Ram Kandel said that they would adopt the new technologies in the insurance sector for real time claim settlement in the days to come as they had already started the technology-based services and insurance apps.

He said that the Sansthan was able to collect premium three times higher in the first three months of the current fiscal year.

Kandel said that they would launch additional insurance products timely and gradually upgrade existing products to bring more people in the insurance net.

Administrator of the Rastriya Beema Sansthan Kabi Prasad Pathak said that the Sansthan had been extending its services becoming more competitive in the insurance market of the country.

About Rs. 25.96 billion is in the Sansthan fund out of a total of Rs. 265.71 billion in the insurance fund in all insurance provider companies, he said.

Stating that the Sansthan was operating the training programmes for the agents and employees to enhance their capacities, he said that the Sansthan had planned to establish additional 10 branches within the current fiscal year.