Insurance Authority Introduces New Measures to Simplify Claims Settlements During Floods and Disasters
Kathmandu — The Nepal Insurance Authority has directed insurance companies to facilitate the settlement of insurance claims during floods and other disasters, introducing measures to support policyholders affected by such emergencies.
The new provisions are intended to simplify the claims process in cases where policyholders have died or gone missing due to disasters, insurance-related documents have been destroyed, or original insurance policies are no longer available.
Claim applications must clearly state the policyholder’s name, date and cause of death, policy number, and the applicant’s relationship with the deceased.
Applicants must also submit documents establishing their relationship with the policyholder, along with a government-issued identification document. Acceptable identification documents include a citizenship certificate, national identity card, driving license, passport, or land ownership certificate, as applicable.
To confirm that the policyholder died or went missing in a flood or other disaster, applicants must provide an authenticated record or recommendation issued by an authorized agency or official. If such documentation cannot be obtained, a judicial declaration of death may also be accepted as the basis for processing the claim.
Claims Can Be Filed Without Original Insurance Policies
The claims process will not be halted if an original insurance policy has been destroyed or cannot be produced due to a disaster. In such cases, insurance companies may proceed with the claim using a copy of the policy maintained in their records.
If a policyholder requests a copy of the insurance policy, the company must provide it free of charge.
If the company’s insurance records, including policy files, have also been destroyed, the policyholder and insurance agent will be required to assist the company in updating its records by providing the necessary documents and information.
Six-Month Grace Period for Premiums and Policy Loan Instalments
The Authority has also introduced a provision allowing policyholders affected by floods or other disasters up to six months of additional time to pay insurance premiums or instalments on policy loans if they are unable to make regular payments.
No additional interest will be charged during this grace period, giving affected policyholders more time to meet their payment obligations. The measure is expected to help those facing financial difficulties due to disasters maintain their insurance coverage.
Death Claims Can Also Be Processed for Missing Policyholders
Under the new provision, the legal heirs of a policyholder who has gone missing due to a disaster may also receive death claim payments.
However, in such cases, the heirs must submit a self-declaration or written undertaking agreeing to accept legal action under prevailing laws if the policyholder is subsequently proven to be alive.
The insurance company may proceed with the death claim only after obtaining this declaration or undertaking from the legal heirs.
The measures are intended to make insurance claims more accessible to families and legal heirs when policyholders die or go missing in floods, landslides, and other natural disasters.