Nepali Non-Life Insurers Capable of Handling Record Claims from Gen Z Agitation, Says NIA President
Kathmandu – Nepali non-life insurance companies are fully capable of paying claims arising from the recent Gen Z agitation, Nepal Insurance Association (NIA) President Birendra Baidwar has stated. Speaking at a program on the future of economic revival organized by the Nepal Economic Journalists Association, Baidwar highlighted that the scale of claims triggered by the unrest is unprecedented in the country’s insurance history.
As of Ashoj 5, a total of Rs 22.25 billion in claims have been filed, excluding government property. Baidwar noted that while the total estimated damage to the private sector amounts to around Rs 80 billion, only 20 to 25 percent falls under the insurance coverage. He added that a few high-profile claims skew the data, and excluding those, insurance coverage accounts for just 12 to 13 percent of total damages.
So far, 2,478 insurance claims have been submitted due to the agitation, making it the largest in Nepal’s history. By comparison, the earthquake saw claims worth Rs 17 billion, and last year’s floods generated claims totaling around Rs 13 billion.
“Given the scale of the current damage, we anticipated even larger claims. Nepali insurance companies have successfully handled previous earthquakes and floods. Greater insurance penetration would have accelerated recovery for affected businesses,” Baidwar said.
He further explained that about 1,700 of the claims are relatively small, ranging from Rs 40-50 lakh to Rs 20 million, while the remaining claims are of a larger scale. Small claims are expected to be settled by the Tihar festival, with a simplified process. For larger claims, advance payments are provided once required documents—such as driving licenses, bill books, and police reports for burnt vehicles—are submitted.
Baidwar emphasized that the scale of claims has also increased the liability of reinsurance companies, including Nepal Reinsurance, Himalayan Reinsurance, and foreign reinsurers.