Insurance Companies to Provide Advance Claim Payments to Bhotekoshi Flood Victims, Special Task Force to Be Formed

Advance Payments Planned to Facilitate Reconstruction and Expedite Claims

Kathmandu — Insurance companies will provide advance payments to policyholders affected by the devastating floods in the Bhotekoshi River area. As a full assessment of damage to hydropower projects and major infrastructure is expected to take time, the decision was made to provide advance claim payments to ensure the cash flow needed for reconstruction.

The Ministry of Finance said the decision was reached following discussions involving the Ministry, Nepal Insurance Authority, reinsurance companies, insurance companies and surveyors on flood-related damage and insurance claim settlements.

During the discussion, Finance Minister Dr. Swarnim Wagle directed the concerned authorities to make the claim settlement process for policyholders in the flood-affected areas simple, convenient and prompt. He urged the authorities not to delay payments for genuine and verified claims because of unnecessary paperwork.

Insurance companies had also provided advance payments of up to 50 percent of verified losses when settling claims for damage caused during the Gen Z protests in September 08, 2025.

The Bhotekoshi floods caused extensive damage to hydropower projects, physical infrastructure, vehicles, agricultural assets and private property. Preliminary estimates indicate that investment worth approximately NPR 180 billion in various hydropower projects with a combined capacity of around 900 MW in the Bhotekoshi area has been affected. Other infrastructure and vehicles have also suffered significant damage, according to preliminary assessments.

As detailed assessments of damage to major hydropower projects and infrastructure and the final determination of claims will take time, the concerned parties agreed to provide advance payments to meet policyholders’ immediate cash-flow needs.

Surveyors to Be Assigned Automatically

The Nepal Insurance Authority will coordinate efforts to make the deployment of surveyors more transparent and impartial during damage assessments. Arrangements have also been made to seek the services of foreign expert surveyors for damage assessments when necessary.

Similarly, the Authority will establish an automated system for assigning surveyors to make their deployment more efficient and transparent.

In view of the exceptional circumstances created by the disaster, preparations are also underway to simplify the existing procedures regarding the documents required for insurance claims.

Special Task Force to Monitor Claim Settlements

A special task force will be formed at the Nepal Insurance Authority to monitor the daily status of insurance claims and settlements related to the Bhotekoshi floods. The task force will coordinate efforts to monitor progress in claim settlements, facilitate liquidity management by insurance companies and expedite reinsurance reimbursements.

Finance Minister Wagle said that, given the difficult circumstances created by the disaster, insurance companies should simplify and facilitate claim settlements to provide relief to those affected by the losses.

“Floods have plunged the country into mourning. In this difficult situation, let us all work together. Let insurance companies help ease the losses suffered by the victims and make claim settlements simple and convenient,” he said during the discussion. “If insurance companies face any problems and the government needs to do something, please let us know. We are ready to help.”