Outstanding Insurance Claims of Non-Life Insurers Cross Rs 30 Billion

Kathmandu — Outstanding insurance claims of non-life insurance companies in Nepal have surged sharply, with the total pending amount exceeding Rs 30 billion, according to the Nepal Insurance Authority.

By the end of Baisakh in the current fiscal year, 14 non-life insurance companies in operation collectively had Rs 30.03 billion in unpaid claims. This figure marks a 46.89% increase compared to the same period last fiscal year, when outstanding claims stood at Rs 20.64 billion.

Insurance experts point to several causes for the increase, including delays by policyholders and surveyors in submitting necessary documentation, as well as administrative inefficiencies within the companies themselves. Additionally, the floods and landslides in last year caused widespread damage across the country, including in Kathmandu, resulting in a surge of high-value insurance claims.

Despite the rise in outstanding claims, insurance companies have shown some improvement in payouts. As of Baisakh this year, non-life insurers had settled 113,937 claims totaling Rs 18.57 billion. In comparison, 113,312 claims worth Rs 13.78 billion were settled during the same period last fiscal year — reflecting a 34.80% year-on-year increase in claim payments.

The settled claims include those related to property, aviation, agriculture and livestock, and engineering contract risks.

As per regulatory provisions, insurance companies are required to process claims based on police reports, surveyor assessments, and other supporting documents. Once all required details are submitted, the claims are typically processed without delay.