13th December 2024, Kathmandu
Life insurance companies have paid more than NPR 1.19 billion in advance claims to policyholders affected by the catastrophic floods and landslides that hit Nepal in September 2024.
Nepal Flood Insurance Claims Payment
The total claims filed due to the disaster have reached NPR 13.36 billion, with ongoing processes to finalize the settlements.
Advance Payments Issued to Affected Policyholders
As of December 11, 2024, life insurance companies have paid advance claims totaling NPR 1.19 billion for 1,514 claims. This amount covers a significant portion of the claims from those affected by the floods.
The total claims filed amount to NPR 12.36 billion across 3,549 cases. However, the insurance companies expect fewer new claims, as most have already been processed.
Shikhar Insurance Leads in Advance Payments
Shikhar Insurance has made the highest advance payments—NPR 30.78 million for 407 claims. Other companies, including Siddhartha Premier (NPR 25.52 million), The Oriental (NPR 4.49 million), and Himalayan Everest Insurance (NPR 10.94 million), have also made notable payments.
Additional payments have been made by IGI Prudential, NLG, and Nepal Insurance, providing significant relief to affected individuals and businesses.
Partial Payments with Full Settlements to Follow
The advance payments are partial, with final settlements to be paid after surveyors submit their reports. These early payments were made to help policyholders cope with the immediate financial burden caused by the disaster.
Final payments will be processed once the reports are received and evaluated, determining the full payouts.
Breakdown of Claims by Type
The claims include payments for property damage (NPR 87.49 million), engineering projects (NPR 4.43 million), motor insurance for private (NPR 11.59 million) and public (NPR 13.69 million) vehicles, and agricultural insurance (NPR 7.26 million). There are still some pending claims worth NPR 3.09 million across different categories.
Devastation from the Floods and Landslides
The floods and landslides, which occurred between September 26 and 28, caused widespread destruction. Private homes, shops, vehicles, and infrastructure were severely damaged.
More than 250 people lost their lives, and thousands of others were affected. Insurance claims continue to be processed as policyholders seek compensation for their losses.
Looking Ahead: Full Payments Upon Completion of Reports
Insurance companies have assured policyholders that full settlements will be made once the surveyors’ reports are finalized.
Although advance payments have provided immediate relief, the full settlements will address the remaining damages. The life insurance sector is committed to helping affected individuals and businesses recover from this devastating disaster.
For more: Nepal Flood Insurance Claims Payment