Insurance Authority Prepares Simplified Claim Process for Families of Missing Rasuwa-Bhotekoshi Flood Victims

Kathmandu — The Nepal Insurance Authority is making final preparations to introduce a separate, simplified procedure to facilitate life insurance claim payments to the dependent family members and legal heirs of people missing in the devastating Rasuwa-Bhotekoshi floods and landslides.

Under existing insurance and national laws, settling claims for missing persons involves legal complications. While missing citizens cannot be declared dead under the law for 12 years, their dependent families may need insurance payments immediately.

The Insurance Authority and insurance company CEOs have begun efforts to overcome these legal hurdles and expedite claim settlements. Discussions have reportedly reached their final stage, according to an Authority official.

The Nepal Life Insurers’ Association and the Insurance Authority had earlier agreed to simplify the process through a special claim-settlement procedure for families of people missing in the Rasuwa-Bhotekoshi disaster. An official said the initiative is being pursued under provisions of the Insurance Act. An association member said the simplified procedure would apply only to those affected by the Bhotekoshi floods.

Discussions are ongoing over the documents required for claim payments, including recommendations from local authorities, and a final decision is yet to be reached, an association official told Bimapost.

Under the existing procedure, a death registration certificate is required to settle a claim. The government is also discussing how to issue such certificates for people missing in the floods. Officials say claim payments could be facilitated if the government’s death-registration procedure and the Insurance Authority’s guidelines are aligned.

According to the National Disaster Risk Reduction and Management Authority, 1,411 bodies had been recovered following the devastating flood that struck Bhotekoshi in Rasuwa at 8:45 a.m. on Bhadra 10, while many remained unidentified. A further 5,875 people were reported missing.

The total life insurance claims arising from the disaster cannot yet be determined. With life insurance penetration in Nepal estimated at around 21%, preliminary estimates suggest that claims could involve around 5% to 7% of those affected when term life and other insurance policies are included.