Insurance Claim Payments Reach Nearly Rs 73 Billion in 11 Months

Kathmandu — Insurance companies in Nepal have significantly expanded their claim settlement scope, with non-life insurers in particular showing remarkable growth in the current fiscal year. According to the Nepal Insurance Authority, the total insurance claim payments by both life and non-life insurers reached Rs 72.94 billion in the first 11 months of the fiscal year.

A total of 365,890 insured individuals have received insurance claims during this period, reflecting the increasing responsiveness of insurers despite various challenges in claim processing.

Non-Life Insurance: Robust Growth Amid Disasters

Non-life insurance companies have seen a notable 26.74% rise in claim payments compared to the previous fiscal year. These companies paid out Rs 20.3 billion in claims across 127,278 policies by the end of Jestha (mid-May to mid-June). The increase is largely attributed to natural calamities such as floods, landslides, and riots, which triggered a surge in claim requests.

Industry insiders credit the strong financial health and operational readiness of non-life insurers for the prompt and efficient disbursement of claims.

Life Insurance: Slight Decline in Claims

In contrast, life insurance companies disbursed Rs 52.64 billion in claims during the same review period, covering 238,608 insured individuals. This marks a 2.45% decline from the Rs 53.96 billion paid out for 268,677 claims during the same period last fiscal year.

Despite the slight drop, industry professionals note that claim settlements in life insurance continue to follow structured procedures involving verification from insurance agents, guardians, and surveyors. Delays in documentation submission by insured parties and their representatives are cited as a common reason for slower claim processing.