Kathmandu – Chhanki Chhetri, CEO of Sagarmatha Lumbini Insurance, expressed concerns over the government’s lack of understanding and adoption of insurance for public infrastructure. In an interview with Banking News, Chhetri emphasized that billions of rupees worth of government-owned physical assets remain uninsured, leaving the state vulnerable to repeated losses.

Referring to the damage caused by floods and landslides during the continuous rainfall on October 12 and 13, Chhetri pointed out the significant destruction to public properties, including roads, bridges, and schools. Without insurance, the government has had to bear double the cost for restoration and reconstruction.

“Out of the annual budget of around NPR 1.7 trillion, NPR 300 billion is allocated for development. A large portion of this is used for rebuilding public assets damaged by disasters,” Chhetri stated. “If these properties were insured, the compensation could have supported reconstruction efforts, reducing the financial burden on the state.”

Insurance Companies Under Pressure

The recent disasters also imposed a heavy financial burden on Nepal’s insurance companies. Chhetri highlighted that claims amounting to approximately NPR 12 billion have been filed following the floods and landslides.

“The primary purpose of insurance is to provide support during crises. It is the company’s duty to settle claims,” he said. While noting that 10% of the claims have already been settled, he assured that the remaining payments are being processed. “Delays often occur because of pending documentation from surveyors or claimants themselves.”

Need for Government Leadership

Chhetri stressed the need for the government to lead by example by insuring all public properties. Doing so, he argued, would not only safeguard state assets but also encourage the general public to adopt insurance as a standard practice.

“Every year, floods and landslides result in significant loss of lives and property. By insuring public assets, the government could demonstrate its commitment to protecting resources and inspire citizens to follow suit,” Chhetri remarked.

Commitment to Timely Claims Settlement

Responding to concerns about claim delays, Chhetri clarified that insurers are working diligently to settle claims efficiently. According to the Nepal Insurance Authority, 10% of the claims filed after the recent disasters have already been paid.

“While it’s easy to label delays as inefficiency, many factors, such as delays in submitting necessary documents, contribute to the timeline. Nonetheless, we are committed to providing prompt and effective services,” he affirmed.

Chhetri’s call for government action highlights the critical need for proactive measures to safeguard public assets and reduce the financial strain caused by natural disasters.