Non-life Insurance Companies in Nepal Owe NPR 39.73 Billion in Claim Payments in Q2

Kathmandu – Fourteen non-life insurance companies in Nepal collectively owe nearly NPR 40 billion in outstanding claim payments, raising serious concerns about the efficiency and oversight of the Nepal Insurance Authority.

According to the financial statements published by these companies, the total unpaid claims reached NPR 39.73 billion by the second quarter of the current financial year. This marks a sharp 41.85 percent increase compared to the same period last year, when the outstanding claims amounted to NPR 28.96 billion.

Among the insurers, Sagarmatha Lumbini Insurance reported the highest amount of outstanding claims. Despite having a paid-up capital of NPR 2.62 billion, the company owes policyholders NPR 6.09 billion. Similarly, Shikhar Insurance is liable for NPR 3.97 billion in unpaid claims, while Sanima GIC Insurance has yet to settle NPR 3.67 billion.

Neco Insurance, with a paid-up capital of NPR 2.01 billion, has an outstanding liability of NPR 2.84 billion. The government-owned Rastriya Beema Company, despite having a paid-up capital of only NPR 266 million, owes NPR 2.64 billion in claims.

Additionally, IGI Prudential Insurance, which has a paid-up capital of NPR 3.2 billion, reported NPR 2.56 billion in unpaid claims. Meanwhile, Oriental Insurance owes NPR 2.36 billion, NLG Insurance with NPR 1.94 billion, and Prabhu Insurance is yet to settle claims totaling NPR 1.55 billion. United Ajod Insurance and Nepal Insurance owe NPR 1.29 billion and NPR 1.23 billion, respectively.