14th September 2025, Kathmandu
The Nepal Insurance Authority (NIA) has issued a formal directive for all insurance companies and their branch offices to resume full physical operations immediately.
NIA Directs for Physical Operations
The order, issued on September 14, 2025 (Bhadra 29, 2082), follows a period of nationwide protests and unrest that prompted many insurance companies to scale back or suspend physical services. With the security situation now improved and curfews easing, the NIA is instructing all insurers to fully reopen their head offices and branch locations, require employees to be physically present during regular working hours, and provide uninterrupted services to policyholders.
Context of the Directive
The NIA’s directive comes in the wake of significant social and political unrest that began on September 8 and 9, 2025 (Bhadra 23 and 24, 2082). The protests and subsequent curfews led to widespread disruption, forcing many businesses to close or reduce their operations to ensure the safety of their employees and property. This temporary closure not only affected day-to-day transactions but also impacted critical services like claim settlements and customer support.
The NIA’s call for normalization is a key step towards stabilizing Nepal’s financial services industry. The Authority has stated that the security situation has improved, making it safe for both staff and policyholders to return to in-person interactions. This move is crucial for restoring public confidence in the sector, which serves as a pillar of economic stability.
Focus on Claims and Public Confidence
A primary objective of the NIA’s directive is to expedite the processing of insurance claims, particularly those related to property damage from the recent unrest. Even before this latest order, the Authority had instructed companies to simplify and fast-track the claims process. This earlier directive remains in force, and insurers are now expected to handle these claims with extra efficiency and care, minimizing bureaucratic delays to help affected individuals and businesses recover as quickly as possible. .
While digital services have become increasingly important, the NIA has highlighted why physical presence remains vital for the Nepali insurance market. Physical offices are essential for faster document verification and on-site inspections which are often required for a thorough claim assessment. They also provide direct, in-person support for clients, which is often preferred for complex or high-value claims. Furthermore, a visible, fully staffed office signals that the company and the industry as a whole remain strong and reliable, thereby reassuring the public. This is particularly relevant in a country where a significant portion of the population, especially in rural areas, still relies heavily on in-person services due to limited digital infrastructure.
Implications and Broader Economic Impact
The NIA’s order is a clear message to all stakeholders that the insurance industry is ready to meet its obligations and return to business as usual. For insurance companies, this means a swift mobilization of staff and the re-establishment of branch networks to address any backlogs. For consumers, it provides the confidence that their policies are valid and that any claims arising from the recent events will be processed without unnecessary delay.
The insurance sector is a fundamental component of Nepal’s financial system, providing risk protection and supporting broader economic activities. Prolonged disruptions can have a ripple effect, impacting everything from construction to healthcare. By insisting on the immediate reopening of physical offices, the NIA is helping to ensure these broader economic functions continue without interruption. The move also serves to reassure foreign investors that Nepal’s regulatory institutions are proactive and resilient, even in challenging times. As the nation begins to recover from the unrest, the NIA’s directive serves as a reminder that the insurance sector is expected to be transparent, efficient, and compassionate in its service to the public.
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