Nepal Reinsurance Company Releases Rs 2.5 Billion in Advance Payments to Insurers

Kathmandu — The Nepal Reinsurance Company (Nepal Re) has disbursed Rs 2.5 billion in advance payments to insurance companies to support swift claim settlements. The company made payments totaling Rs 3.5 billion over two days — on Ashoj 27 and 28, as part of its ongoing effort to ease liquidity pressure in the insurance industry.

Speaking about the payment process, CEO Surendra Thapa said, “We have prepared Rs 3 billion and are asking companies to come and collect their advance payments. So far, around Rs 2.5 billion has already been handed over to the insurance companies.”

Following the  Gen Z protest that occurred on Bhadra 23 and 24, insurance companies have filed claims amounting to Rs 23.22 billion. Insurers have been distributing advance payments rapidly to affected policyholders, supported by funds received from the reinsurance company with which they share their risk exposure.

Nepal Re stated that it has already released Rs 3.5 billion and remains ready to disburse additional payments before Tihar if required. CEO Thapa urged insured individuals to submit the necessary documents promptly and cooperate with surveyors to expedite advance payments.

Although total claims currently stand at Rs 23 billion, the company estimates that the final payout may decline to around Rs 18 billion, depending on the outcome of claim reassessments. If some claims initially categorized as total losses are later classified as partial losses — particularly for structures that can be repaired or rebuilt — the overall claims amount is expected to reduce.