KATHMANDU: Preliminary insurance claims in Nepal following recent flood damage have reached over Rs 25.87 billion across 583 insurance policies, according to data from the Nepal Insurance Authority. Flooding triggered by heavy rainfall in the Bhote Koshi and Trishuli rivers caused severe damage to hydropower projects, public infrastructure, and private property.
The authority reported that engineering and contractors risk insurance accounted for the largest portion of claims. A total of 52 policies under engineering risks generated claims worth Rs 20.50 billion, reflecting substantial losses in the energy and infrastructure sectors. Property insurance recorded 113 claims totaling Rs 2.34 billion, while motor insurance registered 313 claims amounting to Rs 1.55 billion. Transit insurance logged 47 claims valued at Rs 897.7 million, and other insurance categories registered over Rs 529.2 million in claims. Additionally, health insurance accounted for four claims worth Rs 4.16 million, and Nepal Micro Insurance received one claim of Rs 500,000.
Among individual insurers, Oriental Insurance received the highest claim amount, totaling Rs 13.04 billion across eight policies. United Ajod Insurance recorded claims of Rs 4.97 billion, Sanima GIC Insurance received Rs 2.10 billion, while Siddhartha Premier Insurance and Shikhar Insurance each recorded over Rs 1.80 billion in claims.
Insurers stated that reinsurance coverage will support rapid payout processes without financial distress. Prabhu Insurance Chairman Rajendra Malla said claims would be processed on a fast-track basis upon receipt of documents, noting that domestic insurers retain only a small percentage of risk while transferring the rest to international reinsurers. Poshak Paudel, chairman of the Life Insurers Association, affirmed that the insurance sector is fully capable of managing large disaster claims, citing past experiences during major floods and earthquakes.
Finance Minister Dr. Swarnim Wagle directed insurance companies to simplify claim settlement processes and prioritize relief for affected victims. To streamline payouts, the Nepal Insurance Authority announced it will grant blanket approval for deploying surveyors, introduce automated surveyor assignments, and form a dedicated task force to monitor daily settlements and address policyholder grievances.
