Federation Of Truck Transport Entrepreneurs Seeks Separate Relief fund for Accident Victims Uncovered by Insurance

The Federation Of Truck Transport Entrepreneurs Nepal has urged the government to establish a separate fund to provide relief and treatment support to victims of public vehicle accidents not adequately covered by existing insurance provisions. A federation delegation led by its chairman, Rajendra Bikram Baniya, met Finance Minister Swarnim Wagle on Tuesday and presented the demand, citing gaps in the current insurance framework.

Under the FY 2083/84 budget, insurance provides Rs. 10 Lakhs to the families of accident victims who die and Rs. 3 Lakhs for the medical treatment of injured victims. The federation said actual hospital bills often run into lakhs of rupees, far exceeding this coverage, forcing transport operators, vehicle owners and related associations to bear the additional cost.

The federation has demanded that a dedicated "Injured Relief Fund" be established through legislation, to be operated via transport associations under a separate directive, using contributions collected from operators to support victim's families and fund treatment and rehabilitation for the injured and disabled. It also sought a Value Added Tax exemption on such relief contributions, arguing the funds are used purely for humanitarian purposes and should be included in Schedule 1 of the Value Added Tax Act, 2052.

Minister Wagle said he was positive about creating a separate relief fund to address issues not covered under insurance law, suggesting a directive could be framed with liability resting either solely with operators or shared with the government. However, he said VAT provisions could not be changed immediately within the current fiscal year, asking the federation to approach the ministry roughly five months ahead of the next budget for further discussion.

Separately, the federation drew the government's attention to prolonged disruption at the Tatopani border point, a key Nepal-China trade route blocked by a landslide following heavy rainfall. It said the closure, unresolved for weeks, was costing the country billions of rupees in daily revenue and urged authorities to restore full operations at the crossing immediately.