“Wasn’t the system supposed to be fixed?“

Why would it be fixed? Insurance companies aren’t willing to invest in oversight, and everyone else profit, there is no incentive for changing the system.

Nepal is a low income and high corruption country, where the government and formal business structures are unstable enough that 'tipping' becomes common even for government investigators...

It's basically a way for everyone to get more tourists dollars, which is one of Nepals primary exports.