Kathmandu, 23 Sep: During the “Gen Z Movement,” the vandalism, arson, looting, and destruction of property across the country resulted in the largest insurance claims in Nepal’s history. Along with the federal capital Kathmandu, widespread destruction during the protests on Bhadra 23 and 24 led to record-high insurance claims.
According to the Nepal Insurance Authority, a total of 2,478 insurance claims worth Rs 22.25 billion have been filed so far, and the number is still increasing.
Previously, the devastating earthquakes of April 25 and May 12, 2015 (2072 Baisakh 12 and 29), had resulted in around 17,500 claims amounting to Rs 17.65 billion.
Executive Director of the Authority, Sushil Dev Subedi, said that claims from the current protests will increase further, but it is difficult to project the exact total. According to him, claims continue to be registered. A total of 14 non-life insurance companies and 4 non-life microinsurance companies have received claims related to damages.
Protesters destroyed numerous government infrastructures and private sector properties, including businesses, hotels, showrooms, supermarkets, media houses, industrial warehouses, private vehicles, and residential homes.
Highest claims at Oriental
Among the companies, Oriental Insurance has received the largest claims. It registered 73 claims amounting to Rs 5.23 billion. Siddhartha Premier Insurance recorded 279 claims worth Rs 5.08 billion, and IGI Prudential Insurance received 170 claims amounting to Rs 2.77 billion.
In terms of numbers, Shikhar Insurance leads with 374 claims totaling Rs 2.39 billion. Sagarmatha Lumbini Insurance recorded 257 claims worth Rs 1.55 billion, Himalayan Everest Insurance received 196 claims worth Rs 1.16 billion, and Neco Insurance recorded 211 claims totaling Rs 1.12 billion.
Similarly, Sanima GIC Insurance has 142 claims worth Rs 810.7 million, United Ajod Insurance has 189 claims worth Rs 513.4 million, Nepal Insurance Company Limited has 83 claims worth Rs 470.9 million, NLG Insurance Company Limited has 174 claims worth Rs 457.2 million, the state-owned Rastriya Beema Company Limited has 164 claims worth Rs 409.9 million, Prabhu Insurance Limited has 102 claims worth Rs 203.6 million, and National Insurance Company Limited recorded 20 claims worth Rs 68.4 million.
Microinsurance claims near Rs 30 million
Among the four operating microinsurance companies, 44 claims totaling Rs 27 million have been registered. The highest is Protective Microinsurance Company Limited, with nine claims worth Rs 11.3 million. Star Microinsurance Company Limited received nine claims worth Rs 7.2 million, Trust Microinsurance Company Limited had nine claims worth Rs 4.4 million, and Nepal Microinsurance Company Limited registered 17 claims worth Rs 4.1 million.
Property insurance tops the list
By insurance type, property insurance recorded the highest claims with 538 cases totaling Rs 18.61 billion. Motor insurance accounted for 1,778 claims worth Rs 2.95 billion, engineering and contractor risk insurance registered 132 claims worth Rs 333.6 million, transport insurance had 11 claims worth Rs 15.5 million, and other insurance claims totaled 19 cases worth Rs 343.8 million.
Bagmati Province sees the highest claims
By province, Bagmati saw the largest number of claims, with 1,343 claims totaling Rs 17.98 billion. It was followed by Koshi Province, with 322 claims worth Rs 1.65 billion.
Commitment to speedy settlement
The Non-life Insurance Association of Nepal stated its commitment to promptly settling claims resulting from the protests. It urged insured individuals to provide accurate damage details of vehicles and properties to the concerned companies for faster processing.
Directive for quick payouts
Executive Director Subedi said that the Authority has directed insurers to settle claims as quickly as possible. The Authority issued a circular to all non-life and microinsurance companies instructing them to handle claims swiftly and smoothly, considering the financial and personal hardships caused by the unrest.
Chairman of the Insurance Association, Birendra Baidawar, said that many structures, including private homes, vehicles, and businesses, have been destroyed, and assured that insurers are capable of simplifying and expediting claim settlements without causing problems.
Former Chairman of the Insurance Authority and insurance expert, Prof. Dr. Phat Bahadur KC, remarked that the current situation could become a turning point for Nepal’s entire insurance sector. He stressed that the speed and efficiency with which insurance companies process these claims will determine the sector’s brighter future.
How does the claim process work?
In non-life insurance, policyholders can file a claim if insured property is damaged. To receive compensation, they must first submit a written or electronic application to the insurance company, including full details of the event or loss.
Upon receiving the application, the insurance company must immediately assign a surveyor for inspection. The surveyor must submit a detailed report within 15 days, determining the insurer’s liability and the compensation amount under the policy terms.
Normally, the insurance company must settle the claim within 35 days of receiving the surveyor’s report. Additionally, if the damage is confirmed, insurers may provide partial advance compensation before final settlement.
