Insurance Claims Following Monsoon Disasters Surpass Rs 11.82 Billion
Insurance claims worth Rs 11.82 billion have been filed to cover damages caused by the monsoon disasters on September 27 and 28. According to the Nepal Insurance Authority, 3,418 claims have been submitted across various sectors, and Rs 610.79 million has been reimbursed to the victims after loss assessments were completed as of mid-November.
Siddhartha Premier Insurance Company has received the highest number of claims, with 501 applications registered. Other notable insurers include Sagarmatha Lumbini Insurance Company with 377 claims, Himalayan Everest Insurance Company with 243, and NECO Insurance with 219. Companies such as United Ajod, Sanima GIC, and IGI Prudential have also recorded significant numbers of claims, alongside other insurance providers like National Insurance, ALG, and several microinsurance firms.
The hydropower sector has faced considerable challenges, with 304 claims filed under engineering and contractor risks. Many hydropower projects sustained severe damages due to landslides and floods, prompting stakeholders to call on the Ministry of Energy, Water Resources, and Irrigation for expedited claim settlements. However, payments under this category remain minimal, with only 38 claims worth Rs 31.13 million settled so far.
Motor insurance claims were among the most frequently filed. In the private sector, 887 claims were recorded, of which 280 were settled for Rs 61.7 million. Similarly, in the public sector, 91 out of 350 claims have been resolved, amounting to Rs 430 million. Livestock insurance claims stood at 51, with Rs 2.49 million reimbursed for 21 claims, highlighting significant losses of cattle and other livestock due to the disasters.
Crop insurance claims also reflected notable activity, with 131 claims registered and payments made for 65. Meanwhile, sea insurance saw limited settlements, with only two claims reimbursed out of 22 filed. Miscellaneous insurance claims were relatively low, with seven claims paid out of 20.
Regionally, Bagmati Province reported the highest number of claims at 2,968, followed by Koshi Province with 251 and Madhes Province with 101. Other provinces, including Gandaki, Lumbini, Karnali, and Sudurpaschim, recorded fewer claims, indicating varied impacts of the monsoon disasters across the country.
Despite the large volume of claims, delays in settlements remain a significant concern. Of the Rs 8.75 billion claimed under various policies, only Rs 467 million has been paid so far. The slow pace of disbursements, especially in high-value claims from sectors like hydropower, has drawn criticism, with affected parties urging insurers and regulators to accelerate the process.
The Nepal Insurance Authority is continuing efforts to assess and settle claims, aiming to mitigate the financial hardships faced by individuals and businesses impacted by the disasters.
