Insurance Authority Introduces Simplified Claims Procedure for Rasuwa Flood Victims

Kathmandu — The Nepal Insurance Authority has introduced a special procedure to speed up insurance claim payments for policyholders affected by the devastating floods that struck Rasuwa, Nuwakot, Dhading, Chitwan and other districts on August 26, 2026. The procedure aims to expedite settlements and reduce the documentation burden on affected policyholders.

The Authority has issued the “Brief Procedure for Rasuwa Flood Claim Payments, 2026”, approved by its Board of Directors. It allows insurers to settle claims of up to NPR 500,000 without appointing a surveyor. The procedure took effect immediately and is intended to make compensation faster and simpler for flood-affected policyholders.

The Authority said it was introduced to ensure prompt, transparent and systematic settlement of claims involving insured property, vehicles, projects, business inventories and human casualties caused by the floods.

Insurers Can Settle Claims of Up to NPR 500,000 Directly

Insurers will not be required to appoint surveyors for straightforward claims of up to NPR 500,000 that are not technically complex and are supported by sufficient evidence. They may carry out site inspections and collect evidence through their own employees, then settle such claims promptly. The Authority expects this to spare small policyholders lengthy procedures.

Digital and Alternative Evidence Accepted if Documents Are Destroyed

The procedure offers flexibility where floods have destroyed physical documents. Where physical inspection is not possible, photographs and videos taken before and after the damage, digital records, government or financial statements, and tax records can be used as reliable evidence for assessing losses. This is meant to ensure that genuine claims are not rejected merely because supporting documents were lost.

Claims also cannot be rejected solely because the normal time limit has expired or a police report is unavailable. Although time limits apply to other insurance claims, they have been waived for policyholders affected by the Rasuwa floods and related landslides.

Up to 50 Percent Immediate Advance Payment

To give immediate financial relief to affected businesses and policyholders, the procedure allows advance payments of up to 50 percent. Based on a surveyor’s preliminary assessment or available evidence, insurers must pay policyholders up to half of the estimated liability upfront.

For vehicles swept away and completely destroyed, insurers must immediately pay 50 percent of the higher of the sum insured or the prevailing market value. The remainder must be paid within seven days of submission of the vehicle deregistration certificate.

Reinsurers are likewise required to give insurers a 50 percent advance based on preliminary reports.

Claims Also Available for Imported and Unregistered Vehicles

Claims will also be paid for vehicles insured under motor or transport insurance that were not yet registered with the Transport Management Office and were at the Rasuwa Customs Office yard, on roads or in warehouses. For such vehicles, the vehicle identification number will be recorded, and the full claim will be paid after confirming that the vehicle will not subsequently be registered.

For people who went missing in the floods, claims will be paid to their legal heirs on the recommendation of the authorized government agency. If the deceased was a foreign national, compensation will be paid in Nepalese rupees through the respective country’s embassy.

Action Against False Claims

While the procedure simplifies claim settlement, it also provides for action against misuse. If any details, evidence or self-declarations submitted with a claim are found to be false or incorrect, action will be taken under prevailing law, and the insurer will be entitled to recover any amount already paid.

The procedure also authorizes the Chairperson of the Nepal Insurance Authority to resolve any difficulties or ambiguities that arise during implementation, subject to prevailing law.

The Authority said the procedure is expected to help policyholders in the flood-affected areas receive appropriate compensation without unnecessary delay.