KATHMANDU: The torrential rainfall that began on Ashoj 10 has resulted in insurance claims amounting to approximately NPR 2.67 billion as of last Wednesday. The Nepal Insurance Authority (NIA) reported receiving 709 claims, with the aforementioned amount demanded in compensation. However, preliminary estimates from the authority indicate that total insurance claims may reach around NPR 7.25 billion during this period.
According to the NIA, based on initial inspections and information from insurance companies, around NPR 7.28 billion in claims could arise from 2,337 applications. This data accounts only for the period from Ashoj 10 to Ashoj 16, with the authority noting that claims are still being filed, and both the number and the total claim amount are expected to increase.
“The figures provided only cover about four to five days (from Ashoj 10 to Ashoj 16). More detailed information is yet to come,” said a source from the NIA. “Once all the details are in, we will have a clearer picture.”
During this period, claims include NPR 718.9 million under engineering and contractor risk policies, NPR 4.36 million under crop insurance, NPR 11.58 million under livestock insurance, NPR 273.06 million under private motor insurance, NPR 144.56 million under public motor insurance, NPR 6.11 billion under property insurance, NPR 93.23 million under marine insurance, and NPR 1.49 million under miscellaneous policies, according to the NIA.
Provincial Distribution of Claims
Bagmati Province has registered the highest number of claims so far, with 2,079 claims totaling NPR 6.93 billion. Koshi Province follows with 159 claims amounting to around NPR 170 million. Subsequent provinces with significant claims include Madhesh, Lumbini, Gandaki, and Karnali, as per the NIA’s statistics.
Claims from Sudurpashchim Province are yet to be reported, according to the authority. “There may be no claims from Sudurpashchim yet, or it is possible that claims from that province are being reported via neighboring provinces like Karnali and Lumbini,” the source said. “Data collection is ongoing, and we expect to clarify this in the coming days.”
Insurance Simplification and Swift Payments
In response to the disaster, the Nepal Insurance Authority has directed insurers to simplify the claims process and expedite payments. Last week, during a discussion with the chief executive officers of various insurance companies, NIA Chairman Surya Prasad Silwal emphasized the need for prompt claim settlements to counter the misconception that insurers delay payments or create unnecessary complications.
“I urge insurers to process and settle claims as quickly as possible for damages caused by the recent floods and landslides, which have impacted homes, properties, and infrastructure,” Chairman Silwal said. “Given the current exceptional circumstances, documents such as police reports and recommendations from relevant authorities, which are normally required, may be waived.” He also instructed companies to shorten the list of required documents and for insurance surveyors to submit their reports within the designated time frame. The authority has highlighted that additional claims may emerge, and that insurers should be mindful of policies lost due to the disaster.
Damage to Infrastructure and Government Response
According to government statistics, the floods and landslides caused by heavy rainfall on the night of Ashoj 10, and over the following days, resulted in NPR 11 billion in damages to infrastructure, including water supply, roads, energy, and irrigation systems. In a press conference held last Tuesday, Prime Minister KP Sharma Oli revealed that water supply infrastructure suffered NPR 3.52 billion in damages, roads NPR 2.52 billion, energy infrastructure NPR 4 billion, and irrigation systems NPR 1 billion.
Chief Secretary Ek Narayan Aryal further elaborated that out of 37 highways blocked by landslides, 9 have already been cleared and reopened. He also reported NPR 6 billion in damages to crops and livestock. “Floods and landslides have affected 16 hydropower projects with a combined capacity of 667 MW, 18 under-construction projects with a capacity of 1,139 MW, and 5 major transmission towers,” Aryal stated. The government has identified the districts of Kavrepalanchok, Lalitpur, Dhading, Kathmandu, Sindhupalchok, Sindhuli, and Makwanpur as the most severely affected.
The government has pledged to provide immediate grants for temporary housing to families displaced by the floods and landslides, as well as to restore disrupted water supply, strategic roads, telephone, and electricity services. Key roads with destroyed bridges will be outfitted with Bailey bridges, while alternative transport services such as causeways and diversions will be implemented to restore access to other blocked roads.
The government has also committed to strengthening market monitoring to control the artificial scarcity, price hikes, and black market activities in essential goods in flood-affected districts. Teams led by joint secretaries have been deployed to these districts for damage assessment and oversight.