Dispute Over Jhyaplekhola Landslide Insurance Compensation Still Remains Unresolved After Five Months

Kathmandu – The families of the victims of the Jhyaplekhola landslide in Dhading District are still awaiting compensation, five months after the tragic incident. The dispute over the insurance amount has escalated to the court, forcing the victims’ families to endure legal hassles for their claims.

The landslide, which occurred on September 27 in Dhunibeshi Municipality-9, buried three buses, claiming 35 lives. Among the deceased, 16 were passengers of microbus Ba 2 Kha 1345 traveling from Chitwan to Kathmandu. The victims’ families filed a complaint demanding Rs 500,000 per person as insurance and Rs 50,000 for funeral expenses.

In response, the District Police Office forwarded a request to the District Administration Office, Dhading, on November 20, to ensure compensation of Rs 550,000 per victim, as per Section 163 of the Transport Management Act and Section 55 of the Transport Management Regulations 2054 BS. The Transport Management Act holds the vehicle owner, driver, manager, and insurance company liable for such compensations.

The administration directed IGI Prudential Insurance Company, the vehicle insurer, to pay the amount. However, the company refused, citing its liability limit of Rs 500,000 per person. The Nepal Insurance Authority supported this decision, despite widespread criticism that the insurer was unfairly prioritizing its interests over the victims. The company has yet to release even the Rs 500,000 it initially agreed to pay.

Following the insurance company’s refusal, the District Administration Office ordered the vehicle owner to pay the remaining amount. However, the vehicle’s registered owner, Basudev Karki, contested this order in court. Karki argued that he was not the actual owner, as the vehicle had been registered in his name for loan purposes. The actual owner and driver, Anand Rajbanshi, also perished in the landslide. Karki claimed the order unfairly added to the burden on victims rather than resolving the issue.

On January 10, the District Court of Dhading issued an interim order to withhold the additional Rs 50,000 payment until the case is resolved. Meanwhile, the victims’ families have yet to receive compensation, despite legal provisions requiring payment within 21 days of the accident.