The Minister of Culture, Tourism and Civil Aviation Rabindra Adhikari said that international rescue and insurance companies are making such false claims after Nepal Government took necessary measures to address the issues.

Adhikari was speaking at a program of diplomats and honorary consuls held in Kathmandu on October 03, 2018.

In this regard, he informed that the government has already issued fresh guidelines to support rescue, search and medical treatment of tourists and barred agents’ direct involvement in search and rescue operations.

The minister’s statements are coming at a time when the government’s special investigation team reported lack of support from international agencies in probing the tourism insurance scam.

“Most of the firms remained unresponsive throughout the period of investigation. None of the international companies provided any information,” said Prakash Sharma Dhakal, Member Secretary of the investigation team.

“The concerned divisions under different ministries, including home affairs, finance and health, will take necessary action against the companies which were found guilty in rescue fraud,” added Adhikari.

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In view of the global insurance & rescue firms’ serious note on halting their services, the government decided to bar all local agents of those firms from getting involved in tourism search & rescue operations.

A high-level government panel investigating the issue announced a 15-point Mountaineering and Trekking Search and Rescue Guidelines that proposes a special police force under the Nepal Tourism Board to support mountaineering activities in place of agents.

“The guidelines aim to curb fraudulent activities while conducting search and rescue of tourists, especially foreign trekkers and mountaineers visiting high mountain areas,” says Dandu Raj Ghimire, Director General at the Department of Tourism, Nepal.

According to Ghimire, the proposed guidelines will soon come into force after rounds of consultations with all the related stakeholders.

“None of the agents will be allowed to conduct search and rescue of tourists on behalf of international companies,” he adds.

Under the new guidelines:

• A special rescue and search unit under Nepali police will offer 24/7 support in managing necessary resources, along with helicopter services and high-altitude rescues
• The special unit can also invite private helicopter companies to bid for rescue services that they want to offer tourists in high mountains
• The unit holds authority to mobilize police or army choppers in the absence of private helicopters
• The police welfare fund will be instantly utilized to conduct search & rescue, and will be reimbursed once the payment is made by the insurance companies
• A special monitoring committee under the Ministry of Tourism and Ministry of Home Affairs will take care of arrangements from fixing prices to validating documents

“Minister, secretary and representatives from different companies are scheduled to meet to finalize the guidelines,” Ghimire said in a statement.

Ghimire expressed hope the new guidelines will put an end to malpractices such a fake insurance claims concerning tourists visiting Nepal.

Also Read: Nepal Tourism Insurance Scam: Global Insurers Warn, Demand Stern Action

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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.

Also Read:

• Tourist Rescue Scam: Nepal’s Special Committee Uncovers Findings, Makes Key Proposals

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