Kathmandu. Finance Minister Dr. Swarnim Wagle has directed to make the payment of insurance claims in flood-affected areas simple and easy.
He said this while speaking at a high-level meeting organized by the Insurance Authority at the Ministry of Finance on Monday regarding the status of insurance claims after the damage caused by the Rasuwa floods on August 26 and its simplified payment process. “The country is in mourning due to the floods. Let everyone join hands in this difficult situation. Let the insurance companies apply ointment for the loss of the victims. Let us make the payment of claims easy and simple,” said Finance Minister Dr. Wagle. “Instead, if the insurance companies have any problem and the government has to do something, then tell them. We are ready to help. ”
He also said that there is no alternative to all of them coming together in the difficult situation of the country. He also said that due to the unimaginable and tragic floods in the Bhotekoshi river, there has been a huge loss of life and property, as well as a big impact on hydropower projects, public infrastructure and private property.
According to the Nepal Insurance Authority, as per the preliminary data received till August 30, a total of 583 insurance claims have been received due to floods. The total estimated amount of these preliminary claims is Rs. 25.87 billion. Today’s meeting has also decided to take steps towards various facilitation by giving high priority to the payment of claims for these major and initial damages.
Likewise, it has been decided to adopt a faster payment system for small claims by simplifying the procedures to avoid delay in payment of small claims due to the entanglement in paperwork.
The meeting has also decided to provide appropriate amount in advance immediately to ease cash flow to the insured as it will take time to fully evaluate big losses such as hydropower projects and big infrastructures.
In order to make surveyor mobilization more efficient and transparent, the Nepal Insurance Authority (NIA) has agreed to give blanket consent and make arrangements to automatically deploy surveyors through the system. The meeting also decided to form a ‘special taskforce’ at the Nepal Insurance Authority to regularly monitor and facilitate the claim payment process.
Since the government has prioritized relief and rescue in the immediate aftermath of the disaster and the task force has already started working to prepare a framework for reconstruction of the damage, it is expected that this high priority and facilitation of claim payment from the insurance sector will provide immediate relief to the affected people.
The meeting was attended by Chairman, Directors of Nepal Insurance Authority, Executive Directors, Directors, Chief Executive Officers of various insurance and reinsurance companies and office-bearers of Surveyors’ Association.
