Heavy Rainfall Brings Fresh Wave of Insurance Claims Across Nepal

Kathmandu — The recent spell of incessant rain on Ashoj 18 and 19 has brought renewed challenges to Nepal’s insurance sector, which was already under strain following the Gen Z protest on Bhadra 23 and 24. Floods and landslides triggered by heavy rainfall have caused widespread damage, resulting in insurance claims totaling billions of rupees.

According to preliminary estimates, insurance companies may face additional claims worth up to Rs. 5 billion due to the latest floods and landslides. This comes on top of the approximately Rs. 23 billion already claimed for damages caused by the Gen Z protest, with total claims now expected to reach nearly Rs. 30 billion.

While the government’s timely precautionary measures helped avert large-scale financial losses, significant property damage has still been reported in several regions. Electric vehicles in parts of the central and Terai regions were submerged and rendered inoperable, while shops, houses, and warehouses also sustained considerable losses. Insurers expect a notable rise in claims under motor, property, and hydroelectric project insurance.

Although life insurance claims are expected to remain stable, non-life insurers are bracing for a surge in damage-related claims. The continuous rains have also delayed recovery efforts in several flood-affected areas.

In Ilam, 18 fatalities were reported due to flooding, though no major human casualties have been recorded elsewhere. As monsoon rains linger longer than expected, experts warn that the insurance sector may face further claim escalations before the season ends.