Insurance Authority Warns Companies Over Delays and Mistreatment of Insured

Kathmandu — The Nepal Insurance Authority has issued a strong warning to insurance companies following a surge in complaints from policyholders about delays and unfair treatment. In a circular released on Tuesday, the Authority instructed insurers to settle claims promptly and refrain from causing unnecessary hardship to the insured.

The regulatory body stated that complaints have been received regarding insurers delaying the determination of liability beyond reasonable timelines, making liability decisions that harm the interests of the insured, failing to appoint surveyors on time, and surveyors not submitting damage assessment reports within the stipulated period. Insured individuals have also reported being asked to provide unnecessary documentation, adding to their inconvenience.

The Authority emphasized that such actions violate the terms and spirit of the Insurance Act, 2079 BS. As per Sub-section 930 of Section 138 of the Act, any insurer found guilty of such practices may be fined between Rs 200,000 and Rs 2 million. Similarly, surveyors found delaying or mishandling assessments may face penalties ranging from Rs 2,000 to Rs 25,000 under Sub-section 910 of the same section.

The Insurance Authority has urged all companies and surveyors to comply strictly with regulatory requirements and act in the best interest of the insured.