- Nepal's insurance companies face Rs 20.98 billion in preliminary flood claims, with Himalayan Everest Insurance reporting the highest exposure at Rs 6.27 billion.
- Property insurance accounts for the largest claim value, while motor insurance recorded the highest number of individual policy claims.
- Only Rs 6.748 million has been paid so far, as final settlements depend on detailed damage assessments and reinsurance recoveries.
- The Nepal Insurance Authority introduced simplified procedures to expedite settlements, allowing claims under Rs 500,000 without external surveyors.
Himalayan Everest has the largest claim exposure at Rs 6.27 billion; property insurance accounts for the biggest share
Kathmandu, Nepal: Insurance companies have received preliminary claims worth Rs 20.98 billion for losses caused by the floods in the Bhotekoshi and Trishuli river systems on August 26, according to the latest data from the Nepal Insurance Authority.
The claims have been filed under 2,180 policies with non-life insurance and microinsurance companies.
Only Rs 6.748 million, or Rs 67.48 lakh, has been paid so far, including advance and partial payments, according to the latest figures reported from the Authority.
The difference between the amount claimed and the amount paid is not an indication of insurers' final liability. The Rs 20.98 billion figure is based on preliminary claims. The final amount payable will depend on damage assessments, policy coverage, supporting documents and other conditions of individual policies.
Himalayan Everest has largest claim
Himalayan Everest Insurance has received the largest amount of claims, totaling Rs 6.2751 billion from 159 claims.
Sanima GIC Insurance follows with claims worth Rs 3.5079 billion from 242 policies. Shikhar Insurance has recorded 401 claims worth Rs 2.9954 billion, the highest number of claims among individual insurers.
Sagarmatha Lumbini Insurance has received 207 claims worth Rs 1.9368 billion, while Siddhartha Premier Insurance has 205 claims totaling Rs 1.1231 billion.
Neco Insurance has received 240 claims worth Rs 1.0136 billion.
Other major insurers have reported the following claim amounts:
Insurance company Claims Claim amount
Himalayan Everest 159 Rs 6.2751 billion
Sanima GIC 242 Rs 3.5079 billion
Shikhar 401 Rs 2.9954 billion
Sagarmatha Lumbini 207 Rs 1.9368 billion
Siddhartha Premier 205 Rs 1.1231 billion
Neco 240 Rs 1.0136 billion
IGI Prudential 222 Rs 835.07 million
United Ajod 75 Rs 862.20 million
The Oriental Insurance 11 Rs 823.25 million
Nepal Insurance 131 Rs 561.15 million
Prabhu Insurance 114 Rs 503.20 million
NLG Insurance 110 Rs 461.70 million
The figures are preliminary claim amounts and should not be treated as final compensation liabilities.
Property insurance accounts for largest claim amount
Property insurance accounts for the largest share of claims by value.
Insurers have received 518 property insurance claims worth Rs 9.4158 billion. Of this amount, Rs 3.814 million had been paid as of the latest reporting.
Engineering and Contractors' Risk Insurance follows, with 165 claims worth Rs 4.4145 billion.
Motor insurance has recorded the highest number of claims. A total of 1,066 motor insurance claims worth Rs 3.0793 billion have been reported. Payments under motor insurance had reached Rs 2.41 million.
Marine/Transit insurance has recorded 104 claims worth Rs 2.4851 billion, while miscellaneous insurance has 299 claims worth Rs 1.3685 billion.
Health insurance has recorded 28 claims totaling Rs 225.2 million.
The figures show that property and engineering insurance account for much of the financial exposure, while motor insurance accounts for the largest number of individual claims.
Earlier Rs 25.87 billion figure was preliminary
The latest figure is lower than the Rs 25.87 billion estimate reported in late August.
On August 31, insurers had reported preliminary claims of Rs 25.87 billion, including Rs 20.51 billion under engineering and contractors' risk insurance. At that stage, the claims were described as preliminary and subject to change.
The Insurance Authority has since updated the data after further verification of information received from insurance companies. The latest figure is therefore better treated as the current reported claim amount rather than directly comparing the two figures as if they represented identical datasets.
Authority introduces measures to speed up settlements
The Nepal Insurance Authority has introduced a special procedure titled “Brief Procedure for Settlement of Insurance Claims Related to the Rasuwa Flood, 2083.” The procedure was listed by the Authority on September 28–29.
The measures are intended to make it easier to process flood-related claims, particularly smaller claims. Reporting on the procedure says claims of up to Rs 500,000 can be settled without appointing an external surveyor, while advance payments of up to 50 percent can be made on larger claims where the required basis and evidence are available.
The measures do not remove the need to verify losses or establish whether a particular loss is covered by the insurance policy.
Government may facilitate the process, but claims remain insurers' responsibility
The size of the claims has raised questions about whether insurers could face pressure on their cash flow as settlements increase.
Finance Minister Swarnim Wagle said after the floods that the government was prepared to help if insurance companies encountered problems while making claim payments. He also called for a simpler and easier settlement process for flood victims.
However, the minister's statement does not amount to a government commitment to pay the Rs 20.98 billion in insurance claims.
Insurance companies remain responsible for claims covered by their policies. Their actual financial exposure will depend on the final assessment of losses, policy conditions and recoveries available through reinsurance.
One potential area for government and regulatory coordination is the timely processing of reinsurance recoveries. Faster recovery from reinsurers could help insurers manage their cash requirements as large claims are settled.
Any direct liquidity support or other government assistance would be a separate policy decision and should not be confused with payment of insured losses.
Overall disaster losses far exceed insurance claims
The insurance claims represent only part of the economic losses caused by the August 26 floods.
A government Rapid Damage and Needs Assessment led by the National Planning Commission and the National Disaster Risk Reduction and Management Authority estimated physical infrastructure damage at Rs 473.57 billion. The total requirement for recovery and reconstruction was estimated at Rs 723.31 billion.
The energy sector alone accounted for an estimated Rs 134.69 billion in losses. Damage to roads was estimated at Rs 22 billion and damage to bridges at Rs 11.35 billion.
These figures include losses beyond insured private property. They therefore cannot be directly compared with the Rs 20.98 billion in insurance claims as if the two figures measured the same type of loss.
Timely assessment and payment remain the key issues
The immediate challenge for insurers is to process valid claims without unnecessary delays while ensuring that losses are properly assessed.
For affected businesses, hydropower projects, vehicle owners and households, insurance payments can provide an important source of funds for repair and recovery.
At the same time, insurers need to establish the actual loss and determine the extent of policy coverage before making final payments.
The next stage will therefore depend on the pace of damage surveys, document verification, claim assessment and reinsurance recovery.
For policyholders, clear information about required documents, assessment procedures and expected payment timelines will be important as the claims process moves forward.
