Kathmandu: The Government of Nepal has decided to empower all 77 district courts across the country to hear and settle cases related to insurance offenses. The decision was made during a Cabinet meeting held on Tuesday, in accordance with Section 140 of the Insurance Act 2022.
Section 140 of the Act defines a range of insurance-related crimes. These include operating an insurance business without a license, acting as an insurance intermediary or service provider without proper authorization, and engaging in fraudulent practices related to insurance claims. The law also considers it an offense if an insurer colludes, or acts independently, to falsify documents, fabricate claims, or submit misleading information to process claim payments.
Similarly, insured individuals who obtain claim payments through forged documents, false statements, or fraudulent coordination with intermediaries or other parties can be prosecuted under the same provision. Insurance surveyors who intentionally overstate, understate, or manipulate damage assessments in bad faith, causing financial harm to insurers or policyholders, also fall within the scope of punishable offenses under the Act.
With the Cabinet’s latest decision, jurisdiction over such insurance crime cases will now rest with district courts nationwide, streamlining legal proceedings and strengthening enforcement of insurance regulations across Nepal.
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