The Nepal Insurance Authority (NIA) has expressed its commitment to simplifying and expediting the insurance claim process following significant property losses due to floods and landslides triggered by continuous rainfall. During a meeting held on Sunday, the Nepal Insurance Authority and insurers agreed to streamline claim settlements and avoid delays.
Sushiledev Subedi, director and spokesperson for the authority, stated that the claim settlement process will no longer require documents such as police reports and recommendations from concerned bodies, ensuring faster settlements. The authority has also instructed insurers to provide daily updates on claims and payments.
Insurance companies have already started receiving claims related to damages from floods—including those affecting hydropower projects, warehouses, vehicles, and motorcycles. Given the extensive damage to homes, agriculture, livestock, and hydro projects, the insurers are expecting more claims. Public infrastructure like roads and bridges, however, remain uninsured due to the government’s limited awareness of importance of insurance.
Surya Silwal, chairman of the Nepal Insurance Authority, urged insurers to promptly settle claims to dispel the misconception that companies are reluctant to pay. Silwal emphasized the need for quick action.
As of Sunday, non-life insurers had received around 100 claims, and the number is expected to rise.
Poshak Raj Paudel, president of the Nepal Life Insurance Association, confirmed that companies are preparing to settle claims swiftly. According to government data, only 42% of Nepal's population had access to insurance as of mid-September 2024, with the country ranked fourth in vulnerability to climate change and fifth in lightning risk. The United Nations' study on insurance and risk financing revealed that Nepal spent an average of Rs 50 billion annually on disaster reconstruction between 2012 and 2020.
President of Nepal Insurers’ Association Chunkey Chhetri assured that insurance companies are ready to expedite claim settlement and requested the authority to simplify the process further, noting that damage assessment is still ongoing.