Small Insurance Claims for Rasuwa Flood Damage to Be Settled Within a Month

Kathmandu — Insurance companies are preparing to settle small claims from policyholders affected by floods and landslides in Rasuwa and surrounding areas within a month.

Birendra Badhuwaal Chhetri, president of the Nepal Insurers’ Association and CEO of Siddhartha Premier Insurance, said claims ranging from NPR 50 million to NPR 100 million are being targeted for settlement within a month.

He said a simplified procedure is being prepared to ensure quick relief for policyholders affected by the natural disaster. In coordination with the Nepal Insurance Authority, the association plans to have the simplified claim-settlement procedure approved this week.

Once implemented, the procedure will allow small and urgent claims to be settled without being delayed by lengthy processes. Claims related to accident, motor, small businesses and residential insurance will be prioritized.

Chhetri said the floods and landslides in Rasuwa caused extensive damage to hydropower projects, including Upper Trishuli, Rasuwagadhi, Upper Tamakoshi and Langtang, as well as other infrastructure.

He said initial estimates suggest insurance claims from the hydropower sector could be two to four times larger than the claims previously handled by Nepali non-life insurers.

The damage to major hydropower projects is also expected to put additional pressure on the risk-bearing capacity of Nepali non-life insurers, increasing the need to transfer more risks to the international reinsurance market.