Nepalese Journal of Insurance and Social Security

Editorial Note

Fatta Bahadur KC — 2024-03-31

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Factors Affecting Choice of Comprehensive Motor Insurance in Nepal

Aayush Poudel — 2024-03-31

Purpose: Compared to third party liability insurance, comprehensive motor insurance offers far more coverage. Nevertheless, despite the bigger benefit, owners of motor vehicles are not particularly motivated to purchase comprehensive auto insurance. The purpose of this study is to determine the primary determinants that influence the owners’ choice of auto insurance.

Methodology: The study used a descriptive and quantitative research approach to look into how consumers’ choice of automobile insurance is influenced by social, psychological, economic, and vehicle factors. A systematic questionnaire was used to collect data, and it was disseminated both physically and digitally. A total of 247 samples were collected and determined to be useful for the study. Using the Statistical Package for Social Sciences (SPSS), version 26, twelve hypotheses were tested through the use of correlation, multiple regression, and crosstabs (chi-square) analysis in the study of the data.

Findings and Conclusion: In addition, the study found that the choice of comprehensive motor insurance was significantly influenced by factors such as marital status, income, age and value of the vehicle, insurance knowledge, and claim history. It also found that psychological and economic factors had a significant impact on this decision. The study’s conclusions showed that people who could afford to pay a large premium, were financially secure, had higher insurance knowledge, and had a favorable claim settlement experience were the main factors influencing their decision to purchase comprehensive auto insurance.

Implications: The research was conducted with few variables and there are a lot more variables that might be associated to the choice of motor insurance, as the R square value was only 32.4%. Further variables can be explored and the study can be carried out separately for four wheelers or two wheelers to be more specific. Based on the results, it is recommended that insurance companies focus on educating the public about the insurance coverages, risks, and advantages of having a comprehensive motor insurance, and simultaneously improve the claim service for the loss bearers.

Continuance Adoption of Online Stock Trading Among Investors of Kathmandu Valley

Laxman Pokhrel — 2024-03-31

Purpose: This paper investigates the continuance adoption of online stock trading among investors in Kathmandu Valley.

Methodology: Using self-administered questionnaires, this paper applied a purposive sampling technique to collect data from 271 stock investors in the Kathmandu Valley. Structural Equation Modeling (SEM) was used to estimate proposed model.

Findings and Conclusions: This paper found that satisfaction, habit, and disconfirmation have significant positive influence on the adoption of online stock trading among investors in the Kathmandu Valley. However, perceived usefulness, subjective norms, and continuance intention do not appear to have any significant influence on the adoption of online stock trading among investors in the Kathmandu Valley. The result implies that 70% of variance of continuance behavior is explained by the existing model.

Implications: This paper has theoretical and managerial implications. Theoretically, this paper studies continuance adoption of online stock trading in Nepali context and found investors in Nepal continue adopt online stock trading if they perceive it to be easy, satisfying, useful, and habitual investors continue adopting online stock trading. Managerially, this paper could provide empirical evidence to design promotional strategies of online stock trading for SEBON (Securities Board of Nepal) to increase awareness level among online stock investors.

Enrollment, Continuity and Factors associated with Health Insurance among Insured and Uninsured People of Pokhara Metropolitan, Kaski

Baburam Sharma — 2024-03-31

Purpose: To assess SHI and its associated factor among people of Pokhara Metropolitan.

Methodology: A comparative study using a cross-sectional design was carried out from June-December, 2018 among 184 insured and Uninsured People of Pokhara Metropolitan, Kaski using multistage sampling technique. Interview method was used using Interview schedule. Data was entered in epidata version 3 and analyzed using SPSS version 20.

Result: Educational level (p-value 0.03) was one of the major associated factors to determining enrollment status of SHIP. Similarly home ownership (p-value 0.001) was highly associated factor with insurance status. The association of perceive health status of household with enrollment status (p-value 0.043). Knowledge about SHIP was another major associated factor (p-value 0.02) of enrollment status of SHIP in this study. The study showed that 29% of household have dropout. The major reasons for discontinuity were found as no quality of health care, crowed in service delivery site and long waiting time, inappropriate benefit package, distance to health care facility, did not use service use in last year etc.

Conclusion: The major factors such as education, occupation, family income, household ownership, perceive health status and knowledge about social health insurance were found to be associated with enrollment of SHIP

Entrepreneurial Intention of Management Students In Pokhara University

Bal Chandra Paudel — 2024-03-31

Purpose: Entrepreneurship plays a vital role in economic development. This study investigated the factors influencing entrepreneurial intention among management students in Nepalese universities.

Methodology: With a quantitative approach employing a descriptive and analytical research design, the study encompasses a sample of 225 students from Pokhara University Colleges in Pokhara.

Finding and Conclusion: The study found a positive inclination towards entrepreneurship among the surveyed individuals, with a significant proportion expressing confidence in their knowledge and skills for entrepreneurial endeavors. The measurement scale on entrepreneurial intention encompasses various constructs such as entrepreneurial education, attitude, self-efficacy, subjective norms, risk-taking behavior, and intention. The structural equation modeling results showed entrepreneurial selfefficacy, risk-taking behavior, and subjective norms demonstrate significant positive impact on entrepreneurial intention. This study concludes that students who are more confidents, take more risks and have support from their family as well as friends circle tend to launch their business in a confident way.

Implications: The study contributes to a comprehensive understanding of factors influencing entrepreneurial intentions among management students in Nepalese universities. These insights provide a solid foundation for informed policymaking as well as offer practical implications for educators, policymakers, and stakeholders involved in promoting entrepreneurship and economic development in the region.

Examining Green Transformation In Nepalese Human Resource Management Practices

Surendra Prasad Joshi — 2024-03-31

Purpose: This study examines the variables influencing the implementation of environmentally friendly practices in organizations and to examinining the relationships between green transformational leadership, personal moral principles, green management of human resources, green commitment, with employee green behavior.

Methodology: The study used a descriptive and causal research approach. The study used primary data with a questionnaire based on stratified random sampling techiniques, collected from a sample of 393 respondents consisting of employed personnel from both public and private sectors, encompassing banking and non-banking and college campuses. The study used Pearson’s correlation and regression analysis method to analyze data using the SPSS tool.

Findings and Conclusion: The study reveals a signicant relationship of personal moral norms (0.800), green human resource management (0.749), green transformational leadership (.815), green commitment (.810) with employees green behaviour. These factors account for essential differences in employees’ involvement in environmentally conscious actions. The regression analysis determines the significant predictive capability of these parameters with green commitment being particularly prominent.

Implications: These findings emphasize the solid empirical evidence of the study’s results, establishing a quantitative basis for the interrelatedness of personal beliefs, organizational practices, leadership styles, and employee participation in environmentally sustainable behaviors. The practical implications for organizations are enhanced by including quantitative evidence, highlighting the importance of dedication and strategic leadership in achieving long-lasting effects on a sustainable workplace. Further research in green behavior is essential, and the qualitative observation method is recommended for future researchers.

Impact of Exports, Imports, Foreign Direct Investment, and Government Expenditure on the Economic Growth of Nepal

Sunil Devkota — 2024-03-31

Purpose: Nepal is undergoing a phase of trade deficit as the economy is massively dependent on imports with few exports and insignificant foreign direct investment. This study was made to assess the impact of exports, imports, foreign direct investment, and government expenditure on the economic growth of Nepal and to determine the level of impact.

Methodology: The dependent variable was economic growth represented by gross domestic product and the independent variables were the exports, imports, foreign direct investments, and government expenditure. Data on dependent and independent variables were collected from secondary sources for the period 2000 to 2022. The collected data was analyzed in SPSS by employing the Ordinary Least Square method and Linear Regression. A regression model was formulated to explain economic development. Findings and

Conclusion: The analysis showed that exports have a significant impact on economic growth, however in the opposite direction. The foreign direct investment did not have any impact on the economic development of Nepal as the p-value was greater than 0.05, and government expenditure has a positive relationship with economic growth however the degree of association was not significant.

Implications: The findings of the research provide insights into the variables of economic development and may be referred to for crafting development strategies. The results emphasize the complex nature of factors influencing economic development, suggesting the need for policy interventions and further research to fully understand the dynamics at play. Future studies should consider including more variables in the model and analyzing the impact on economic growth to make the research more effective.

Unanticipated Political Events and Their Effect on the Nepalese Insurance Sector and Stock Market

Dipendra Karki — 2024-03-31

This study analyzes the relationship between unanticipated political events and their profound impact on both the insurance sector and the Nepalese stock market (NEPSE). Utilizing comprehensive analysis, the research spans 200 days before to 10 days after the political event’s announcement. Employing Levene’s test, dummy variable regression, and estimated average abnormal return, the study reveals significant effects of political events on the insurance index and NEPSE indices. The pre-event period is particularly significant, indicating potential information leakage. Window Frame 1 (-10, -1) stands out as the most profoundly impacted period, with Window Frame 2 (0, +10) witnessing moderate impact during the announcement and Window Frame 3 (+2, +10) experiencing a comparatively lesser post-event effect. Nepali Congress Wins Election (Event 1) and End of Nepal Blockade (Event 3) were identified as the most significant events for the Insurance and NEPSE indexes. Dummy variable regression emphasizes the significance (P < 0.05) of multiple window frames (mostly 1, 5, & 6) in the NEPSE index, suggesting early information leakage adjustments. The insurance sector also demonstrates a highly significant (P < 0.05) impact of unanticipated political events across various data points, with the post-event period (Windows 2 and 3) as the sole exception. Cumulative abnormal return analysis demonstrates that the Nepalese stock market is moderately inefficient, as it reinforces the market’s attempt to incorporate political influences within three to five days of the announcement date. These findings bear implications for investors, policymakers, and regulatory authorities seeking to understand the dynamics of the Nepalese stock market, enabling informed decision-making during times of political transitions and uncertainty.

Investigating Policyholders’ Perception Towards Insurance: Evidence From Structural Equation Modeling

Purnima Lawaju — 2024-03-31

Purpose: Within the burgeoning insurance market of the Kathmandu Valley, this study aims to investigate the perceptions of policyholders regarding insurance. It seeks to understand the factors influencing policyholders and propose solutions to the challenges faced in the insurance industry.

Methodology: This study employs a cross-sectional survey methodology, utilizing non-probability sampling, and specifically purposive sampling, to collect data from the insurance policyholders of Kathmandu Valley. Structured questions were used to elicit responses from a sample of 403 participants. For data analysis both descriptive and inference statistics were used.

Findings and Conclusion: Findings of the study reveal that policyholders perceive insurance policies as essential safeguards against financial risks. However, several challenges, including policy misunderstanding, claim denials, and policy complexity, were identified. Through structural equation modeling, significant relationships between Customer Loyalty and Transparency with policyholders’ perceptions was observed.

Implications: The study contribute to enhance policyholders’ understanding and perception of insurance, thereby fostering trust and satisfaction in the insurance industry

Reforming Pension System In Nepal

Dilip Raj Paudel — 2024-03-31

Purpose: The pension system in Nepal is pivotal for safeguarding social security and financial stability among its aging populace, yet it grapples with substantial hurdles, encompassing demographic transformations, insufficient funding, and operational inefficiencies. The primary aim is to investigate and analyze different facets of Nepal’s pension system, assessing its adequacy, coverage, and sustainability.

Design/Methodology/Approach: This study utilized a mixed-method approach, combining primary survey data from 237 respondents with secondary data from the Pension Management Office. Employing a descriptive research design, it aimed to offer insights into the current state of Nepal’s pension system and stakeholders’ perceptions.

Findings: The findings revealed widespread dissatisfaction among respondents regarding the current provision of pension benefits, highlighting the urgent need for reforms. Key reform priorities identified included raising the retirement age, expanding coverage to the informal sector, increasing contribution rates, improving efficiency and management, and enhancing public awareness.

Research limitation/ Implications: This study exclusively focused on the pension system, neglecting other components of social security benefits that many influence individuals’ motivation. Likewise, this study totally relied on descriptive analysis restricting its capacity to establish causal relationships. Likewise, this insight provides valuable guidance for policymakers in developing comprehensive reform strategies to address the systemic challenges and shortcomings in Nepal’s pension system, ensuring its long-term sustainability and adequacy for future retirees

Vedic Astrology and Its Perceived Impact on Management Decision Making

Sushil Prasad Sharma — 2024-03-31

Purpose: Planned Behavior Theory was utilized to investigate the perceived influence of astrology on the management decision making. This paper attempted to study the Vedic Astrology and how such astrological perspective signifies the management decision making.

Design/Methodology/Approach: Structured Questionnaire was used and 103 valid responses were collected out of 130 distributed. Survey was conducted from different age group with different education background. Descriptive statistics were calculated and to measure perceptual impact, rank was computed. For more descriptive support, different cross tabulation was computed.

Findings and Conclusion: The study concludes that every individual believes in astrology in different forms some believe it in the form of palmistry, some believe in birth chart “Kundali”, some believe in numerology and so on. Study also reveals that there is no any impact of gender, age and education on believe in astrology or it can be said that, the choice behind astrology in any form is independent of gender, age and education. Similarly, gender and education have no any impact towards the following the fortune teller or astrology or in any other form.

Implications: This paper highlights astrological practices and culture especially in case of fortune teller and there were no any discussion regarding to specified astrological methods. Further, researcher may broaden the finding by incorporating particular astrology technique or methods like palmistry, numerology, and broaden aspect of Kundali.