Kathmandu. The insurance claim amount for the physical and economic damage caused by the devastating floods in the Bhotekoshi and Trishuli rivers on August 26 has crossed Rs 20.90 billion.
According to the data provided by the Insurance Authority of Nepal till October 12, a total of 2,427 claims have been received in 18 non-life and micro insurance companies. Despite the huge loss of life and property due to the floods, only a very small amount of money has been settled so far compared to the claims made by the insured.
The total estimated initial claim is Rs 20.90 billion, out of which the non-life insurer has paid Rs 23.52 crore so far. Only about 1.13 per cent of the total estimated claim has been paid so far. The amount pending settlement is Rs 20.66 billion. This amount is about 98.87 per cent of the total claims.
According to the NRA, the status of claims and payment under the heads of 6 different insurance policies is as follows:
Property Insurance :
Number of insurance policies: 572, Estimated claims: Rs 95,719.87 lakhs, Claims paid: Rs 862.83 lakh
Engineering and Contractor Risk Insurance:
Number of sum insured: 174, Estimated claim: Rs 43,972.58 lakh, Claim paid: Rs 30.00 lakh
Motor Insurance:
Number of sum insured: 1,068 (highest insured),.Estimated claims: Rs. 28,500.34 lakhs, Claims paid: Rs. 600.74 lakh
Transport Insurance:
Number of sum insured: 106, Estimated claim: Rs 23,405.91 lakh, Claims paid: Rs 782.72 lakh
Other Insurance:
Number of Sum Insured: 455,.Estimated Claim: Rs. 15,010.32 Lakh
Claim paid: Rs. 76.30 lakh
Health Insurance:
Number of sum insured: 52, Estimated claim: Rs 2,391.44 lakh
Paid claims: 0.00 (not mentioned in details)
Most of the economic losses from the floods were seen in the property insurance sector, where initial claims of more than Rs 9.5 billion were received.
Although the insurance companies submit the details on the basis of the initial estimate, the amount may be changed after the actual and final assessment of the damage, according to the Insurance Authority.
The NRA has also implemented separate ‘Rasuwa Flood Claim Payment, 2083 BS’ so as to avoid any delay in claim settlement.
