Nepal Insurance Authority Faces Backlog of Unsolved Claims

Kathmandu – The number of insured individuals seeking intervention from the Nepal Insurance Authority (NIA) has surged as insurance companies struggle to pay claims. Complaints against delayed or denied insurance payouts have been steadily rising, highlighting a growing crisis in the sector.
According to NIA data, 141 complaints were filed by end of the Poush month (mid-January) of the current fiscal year. In the last six years, complaints have increased from 100 in 2075/076 to 244 in 2080/081. At present, 430 complaints are under review, including 287 unresolved cases from the previous fiscal year.

Insurance expert Bhoj Raj Sharma attributes the declining trust in insurance companies to their failure to settle claims on time and a lack of transparency in explaining policies to clients. Many policyholders also struggle to understand insurance terms, leading to further disputes.

Non-life insurance companies account for most complaints, with policyholders often claiming that surveyors underreport damages, while insurers argue that insured parties sometimes inflate claims. The NIA attempts to resolve disputes through mediation, but unresolved cases can be escalated to the High Court and Supreme Court. Experts suggest that an independent department with judicial authority, similar to a district court, should be established within the NIA to expedite case resolutions.