Kathmandu: Non-life insurance companies in Nepal have reported claims amounting to Rs. 12.36 billion for damages caused by floods and landslides.

According to data from the Nepal Insurance Authority as of December 11, a total of 3,549 claims have been filed with 18 non-life and microinsurance companies. These claims amount to a liability of Rs. 12.36 billion. However, insurance companies have settled only 1,514 claims, disbursing Rs. 1.19 billion, which accounts for 9.67% of the total claims.

Breakdown of Liabilities by Companies

• Siddhartha Premier Insurance received 508 claims, amounting to Rs. 2.63 billion. The company has settled 219 claims, paying Rs. 255.3 million.
• Shikhar Insurance has 457 claims worth Rs. 1.16 billion. It has resolved 407 claims, disbursing Rs. 307.8 million.
• Oriental Insurance faces 183 claims totaling Rs. 1.53 billion but has only paid Rs. 44.9 million for 140 claims.
• National Insurance has liabilities of Rs. 510.8 million for 109 claims, settling just six claims worth Rs. 4.39 million.

Other companies such as NLG Insurance, IGI Prudential, Nepal Insurance, and Prabhu Insurance also have significant liabilities but have only partially settled claims. For instance, NLG Insurance has liabilities of Rs. 505.8 million for 196 claims, but payments total Rs. 25.4 million for 43 claims.

Major Companies with Pending Payments

• Sagarmatha Lumbini Insurance has liabilities of Rs. 1.35 billion for 422 claims, settling Rs. 145.4 million for 137 claims.
• Himalayan Everest Insurance has Rs. 1.01 billion in liabilities for 252 claims, paying Rs. 109.4 million for 117 claims.
• Sanima GIC, United Ajod Insurance, and Neco Insurance also hold significant liabilities, with varying levels of payments made so far.

Microinsurance Sector Performance

In the microinsurance sector, companies like Star Micro, Trust Micro, Nepal Micro, and Protective Micro face smaller liabilities but have similarly low settlement rates. Star Micro, for example, has liabilities of Rs. 3.65 million for 10 claims, paying Rs. 250,000 for three claims.

Concluding Insights

The low settlement rate of 9.67% reflects the challenges in addressing insurance claims for natural disasters. Industry stakeholders emphasize the need for efficient claim processing to support policyholders during critical times.