Kathmandu. One of the biggest promises of any insurance is to provide immediate relief to the customer in times of crisis. However, when there is a delay in the process of payment of insurance claims, such promises tend to be limited to paper sheets only.
Delay in payment of insurance claims is a common problem in Nepal. This has had a direct impact on the general public. At the root of this problem is an important but often overlooked professional, insurance surveyor.
The recovery of claims in the insurance sector has raised serious questions about the silence of the regulatory body Nepal Insurance Authority and insurance companies.
Invisible Obstacle and Surveyor’s Challenge
Insurance surveyors are an important link between the insurer and the insured. They assess the damage and validate the claim process. Despite playing such an important role, they face many challenges every day.
Unnecessary paperwork and delays: surveyors often say that the delay in submitting the survey report is due to excessive demand for documentation from the insurer and lack of coordination. This only brings hassle and frustration to the insured.
Access Disruption: Surveyors are facing major security challenges and obstacles even in accessing the site as they survey the damage caused by the recent Generation-Z (GenG) movement. This has further delayed the claim process as the survey was not conducted on time.
Lack of resources{ Outdated technology, unbalanced workload, and weak infrastructure have reduced the efficiency of surveyors.
These challenges have weakened the overall performance of the insurance sector. Ultimately, there is a crisis of trust in insurance for the general public as well as big industrialists and businessmen.
Effective Regulatory Initiative
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The Nepal Insurance Authority (NIA) has taken some efforts to expedite the payment of claims for the loss caused by the agitation. It has already warned of action against companies and surveyors who delay the payment of claims. It has also set up a judicial bench to resolve claims and disputes, which can increase transparency.
However, these steps are not enough. The regulator has not been able to come up with a concrete action plan to ease the claim process and provide a proper environment for the surveyors.
There is a shortage of professional surveyors in Nepal’s insurance market. On the other hand, they are also suffering from limited wages. The limitations of market capacity and the need for the Cabinet to direct the Insurance Authority to facilitate the payment of claims by reducing the hassle in the claim payment process means that the insurance industry is not able to work as expected.
The Cabinet meeting held on Sunday evening had decided to direct the Insurance Authority to provide up to 50 percent compensation in advance.
The Road Ahead: The Need for Leadership and Collaboration
Collaboration and coordination among regulators, companies and surveyors is essential to restore confidence in the insurance sector.
Regulatory and Procedure: Regulatory processes should be simplified and transparent. This reduces the hassle of paperwork and makes the surveyor’s work faster.
Use of technology: The use of modern technologies such as TAG_CLOSE_span_39 mobile apps and artificial intelligence should be encouraged, which make surveys more accurate and faster.
Emergency Protocols: Clear protocols should be developed to provide safe and easy access to surveyors during crises such as movements or natural disasters.
Insurance surveyors in Nepal are loyal and committed. The insurance sector can achieve its goals in the true sense only if they are given the right resources and systemic support. For this, the leadership and responsibility of regulators and companies is indispensable. Otherwise, the slow processing of insurance claims will jeopardize the future of the entire industry.
