The post Nepal Tourism Insurance Scam: Global Insurers Warn, Demand Stern Action appeared first on Nepali Sansar.
]]>As the recent reports say, the international insurance companies have seriously warned the Nepal Government of stopping their assistance to Nepal tourism department from September 01, 2018.
The insurers have reportedly said that they would stop offering travel insurance policies for tourists visiting Nepal if the Nepal Government fails to end the ongoing insurance fraud issue created by brokers in the country’s trekking and mountaineering agencies.
“In 21 days, our clients, who provide travel insurance for over 70 percent of the English-speaking travelers who visit Nepal, will stop issuing travel insurance policies for Nepal,” says Danny Kaine, Head of Assistance for Travellers Assist, a UK-based firm that offers insurance support to international tourists visiting Nepal.
Kaine informed that they stopped 61 fraudulent rescues, nearly one in every two days, since the time Nepal Government began investigating the issue on May 30, 2018.
“Our company has stopped 61 fraudulent helicopter rescues from happening, that’s one every two days. And that’s just the result of our company. The situation is out of control, and I believe that from the inside you don’t quite see how the fraud is happening and to what scale,” informed Kaine.
According to him, three major insurance players from UK, Australia and US are also discussing on possibilities of cancelling all the travel insurance policies for Australian, American and British tourists visiting Nepal.
“In addition, we are working with the governments of the UK, Australia, New Zealand, the US and Canada on the issues,” informed Kaine.
Adding to the seriousness of the scam, Kaine further informed that their investigations over the last six months period found nearly 30 percent of unnecessary helicopter rescues in Nepal.
“We will not leave any stone unturned to punish the agencies and people involved in fraud that has dented Nepal’s reputation,” said Kaine, while informing that Nepal Government would soon issue a guideline on further moves pertaining to rescue operations.
“Fake rescue is obviously a matter of concern for us, and we have recommended stern action against all the companies involved in it,” says Krishna Prasad Devkota Tourism Secretary.
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]]>The post Tourist Rescue Scam: Nepal’s Special Committee Uncovers Findings, Makes Key Proposals appeared first on Nepali Sansar.
]]>A recently-released government’s special committee report found that these agencies have reportedly engaged in fraudulent practices such as fake helicopter rescues and hospital treatments in their dealings with foreign tourists.
Report Findings
In its 700-page investigation report submitted to the Tourism Minister Rabindra Adhikari, the government-appointed fact-finding committee reported that these operators have been earning thousands of dollars through illicit practices.
The committee reported that:
“Making false travel insurance sickness claims when you are not ill is fraud, and there are many agencies involved in the illegal business in Nepal,” said a member from the fact-finding committee.
“This is a crime, and such operators should be prosecuted by the Home Ministry under organized crime after necessary investigation if anyone lodges a complaint,” the committee noted.
Report Recommendations
In its 700-page report to the government, the committee recommended to handover rescue activities completely to the Nepali Police department to ensure security & safety aspects and control the scope of illicit activities, starting from the next tourist season in September-November period.
“We are concerned by the bogus helicopter rescues and false medical insurance claims. In order to stop such offences, we have decided to entrust all tourist rescue-related tasks to the Nepal Police,” Tourism Secretary Krishna Prasad Devkota said in a statement.
Devkota informed that they are yet to ‘prepare a working guideline related to the rescue operations and implement it from the autumn season’ following the Cabinet’s approval.
Committee Proposals:
The committee’s recommendations were based on a detailed study on similar cases of rescue operations in other parts of the world such as Switzerland, Scotland, Canada and France.
In total, the committee recommended action against five such companies without foreign exchange permits for claiming rescue charges from tourists, six hospitals for collecting heavy fees from tourists for treatment & claims against their insurance policies, and many others involving in tax evasion.
Overall, the committee investigated 36 trekking, travel and rescue agencies, 10 helicopter companies, 6 hospitals considering complaints by tourism entrepreneurs.
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