Non-Life Insurance Outstanding Claim Payments Reach Rs 8.03 Billion in FY 2081/82

Kathmandu – The outstanding insurance claim payments of non-life insurance companies in Nepal have reached Rs 8.03 billion in the fiscal year 2081/82.

According to the financial statements published by 14 non-life insurers for the last fiscal year, the outstanding claim payments saw a sharp increase of 12.41 percent compared to the previous fiscal year’s figure of Rs 7.152 billion.

Companies say the rise is largely due to the heavy financial burden created by floods, landslides, riots, and protests during the year. They also cite negligence in survey reports, delays in police documentation, and prolonged settlement procedures with reinsurers as reasons for the mounting backlog.

Among the insurers, National Insurance has emerged as the top company with arrears amounting to Rs 1.05 billion, the highest in the industry. Following National Insurance, Siddhartha Premier Insurance recorded arrears of Rs 892.7 million, though it managed to reduce its backlog slightly compared to the previous year through faster settlements.

Sagarmatha Lumbini Insurance reported arrears of Rs 823.7 million, while The Oriental Insurance’s pending claims rose to Rs 807.6 million. Neco Insurance owed policyholders Rs 756.1 million, and Rastriya Beema Company’s arrears reached Rs 552.03 million. Himalayan Everest Insurance had claims worth Rs 527.6 million outstanding, while IGI Prudential Insurance recorded arrears of Rs 525.9 million.

Other insurers also reported significant pending liabilities. Shikhar Insurance had Rs 461.8 million in arrears, Sanima GIC Insurance owed Rs 420.09 million, United Ajod Insurance stood at Rs 353.4 million, Nepal Insurance recorded Rs 345.3 million, and Prabhu Insurance owed Rs 220.2 million in unsettled claims.