Nepal given ultimatum over insurance scams
A group of insurance companies have delivered a final ultimatum to the Nepal government to deal with travel insurance scammers.
Insurers are demanding swift and proper action against fraudulent insurance claims or they will no longer provide cover.
This could seriously affect the country’s trekking tourism industry.
Last year Travelmole reported on a long established insurance racket between helicopter rescue firms, trekking guides and medical facilities in the country, evacuating trekkers for minor or non-existent illnesses or injury and claiming inflated fees from insurers.
Guides were even known to put laxatives in food to imitate illness to trigger a helicopter rescue.
After insurers uncovered the scam, the government investigated 15 companies suspected of involvement but they say it is still continuing and no action has been taken yet.
"Please don’t be under any illusion that the fraud has stopped. It has not. If our clients stop issuing travel insurance policies in Nepal, it won’t be long until other insurers do the same," Traveller Assist, a company representing international insurers, wrote in a letter to Nepal’s minister of tourism, according to AFP.
"To be clear, this is an ultimatum," it said, giving a February 15 deadline or members will pull insurance cover.
Tourism Minister Rabindra Adhikari said the government is still making a legal case against alleged fraudulent operators.
"We are deeply committed to taking action against them. The government will make no compromises in this regard," Adhikari told AFP.
The government introduced new rules and beefed up oversight to combat bogus rescues but many in the tourism industry say the problem still persists.
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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