Kathmandu, Aug. 10 -- Nepal has brought into force an insurance scheme aimed at protecting small businesses from risks that can disrupt their operations and income.

The first-of-its-kind policy, targeting small retail and service businesses such as fruit shops, motorcycle workshops, tailoring businesses and plumbing services, came into effect with the start of the new fiscal year in mid-July.

For instance, if a fruit shop owner is injured or hospitalised, the policy will cover lost income if the shop has to close.

Nirmal Adhikari, director of the Nepal Insurance Authority, said insurance penetration among Nepal's micro, small and medium enterprises (MSMEs) remains severely low and that the new policy is the first step towards addressin...