Non-Life Insurers Pay Rs 4.87 Billion in Claims Following Last Year’s Floods and Landslides

Kathmandu – Non-life insurance companies in Nepal have paid out claims totaling Rs 4.87 billion in response to damages caused by the devastating floods and landslides that struck the country in the month of Ashoj (September) last year. The payments have been made against 3,056 claims, as per data released by the Nepal Insurance Authority as of Jestha 28 (June 11). This amount also includes advances issued to policyholders awaiting final claim settlement.

Despite these payouts, a significant number of claims remain unresolved. Insurers are yet to settle 696 claims, with a pending liability amounting to Rs 6.69 billion. While insurers cite delays in documentation from policyholders and incomplete surveyor reports as key reasons for the hold-ups, concerns have been raised over the sluggish pace of settlements even eight months after the disaster.

Though many companies have been slow in processing claims, a few have stood out for their efficiency. Shikhar Insurance has paid Rs 562.5 million for 458 claims, while Siddhartha Premier Insurance has emerged as the highest payer, disbursing Rs 1.67 billion for 428 claims. Siddhartha Premier has also issued a public notice urging claimants to submit remaining documents promptly so the outstanding claims can be processed without further delay.

Other notable contributors include Sagarmatha Lumbini Insurance, which has paid Rs 577.3 million across 357 claims; Neco Insurance with Rs 482.2 million paid for 270 claims; and United Ajod Insurance with Rs 422.2 million paid for 235 claims. Himalayan Everest Insurance and NLG Insurance have also made significant disbursements of Rs 417.1 million and Rs 314.2 million, respectively.

Among micro-insurers, Star Micro Insurance has paid Rs 2.2 million, while Protective Micro, Nepal Micro, and Trust Micro Insurance have each contributed between Rs 200,000 and Rs 500,000.

Breaking down the payouts by category, Rs 3.44 billion has been paid under property insurance alone. In addition, Rs 372.2 million was paid in private motor claims, Rs 282.7 million in public motor insurance, Rs 73 million in engineering insurance, Rs 371 million in livestock insurance, Rs 15 million in agricultural crop insurance, and Rs 17.8 million under marine insurance.

The Insurance Authority has urged companies to expedite the claim settlement process, emphasizing the importance of timely payouts in building public trust in the insurance sector.