Nepal | August 05, 2020

Non-life insurers settle 42.38 per cent claims

Himalayan News Service
Share Now:
Non-life insurers at a glance

Non-life insurers at a glance

Kathmandu, August 7
Non-life insurance companies have settled 42.38 per cent of the claims related to the devastating earthquakes of April and May, which regulators say is ‘satisfactory’.

As of Thursday, 16 non-life insurers had received 16,603 claims, of which 7,037 have been settled, shows the latest report of the Insurance Board (IB), the insurance sector regulator.

“The pace at which insurance firms are settling claims is satisfactory. But, of course, it would be better if they could further speed up the claim settlement process,” said Bhoj Raj Sharma, advisor at the IB.

The claims received so far by non-life insurers are worth Rs 18.43 billion. Of this amount, Rs 2.49 billion has been extended to clients as compensation. However, the compensation extended to clients so far is 13.51 per cent of the total claim amount.

The discrepancy in percentage of settled claims and settled claim amount shows that non-life insurers are currently focusing on settlement of smaller claims.

“It takes time to settle claims of bigger amount as damage assessment process is longer. In such cases, we even have to bring in people from reinsurance companies abroad to determine the loss,” officials of insurance companies said.

As of Thursday, the highest number of claims was received by Sagarmatha Insurance. The company received 2,812 claims worth Rs 1.31 billion. It has so far settled 1,043 claims, or 37.09 per cent, worth Rs 316 million.

The second highest number of claims was received by Shikhar Insurance. It had received 1,504 claims worth Rs 1.13 billion as of Thursday. Of these, 977, or 64.96 per cent, claims worth Rs 330.30 million have been settled.

Next in the line of largest claim recipients is Nepal Insurance Company. It had received 1,503 claims worth Rs 652.84 million as of Thursday. Of these, 479, or 31.87 per cent, claims worth Rs 254.21 million have been settled.

Although non-life insurers are sitting on quite a good number of unsettled claims, they do not seem much worried as very few new cases are being filed these days.
Because of this, insurers are becoming more and more confident about being able to manage the situation.

This, in turn, has relieved regulators.

“It now appears no non-life insurance will go bust, although many may be forced to bear losses,” said IB Director Raju Raman Paudel, adding, “We were fortunate because the earthquake did not affect industrial areas. Had those areas been hit, many non-life insurance companies probably would have to shut their businesses.”

The devastating quakes of April and May caused widespread destruction in 14 districts. The tremors claimed 9,000 lives, completely damaged some 508,000 private houses and over 19,000 classrooms, and rendered thousands of people homeless.

The losses triggered by the quakes have squeezed the income of thousands of households and pose a threat to the country which had begun gearing up for a higher trajectory of economic growth.


A version of this article appears in print on August 08, 2015 of The Himalayan Times.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Airlines seek permission to resume flights

Airline companies have to resubmit their proposal for slots if flight operations are halted for more than 60 days Kathmandu, August 3 The government's decision to resume domestic and international flights from August 17 has prompted airline companies to start submitting their proposals to the Ci Read More...

Dhading bans sand mining during monsoon

Dhading, August 3 In view of increasing deaths related to river mining, the authority in Dhading decided to impose a complete ban on sand mining from rivers in the district during the monsoon season. There is already a rule that bans mining of river products using heavy equipment during the ra Read More...

File photo of Melamchi Water Supply Project tunnel.

‘Technical error caused Melamchi tunnel accident’

Kathmandu, August 3 A committee formed to investigate Melamchi tunnel incident has concluded that one of the sluice gates on the tunnel of the Melamchi Water Supply Project had broken due to a technical error. A project engineer and a driver had died due to the flood resulting from the breakag Read More...

reproductive health, Minister of State for Health and Population, Padma Kumari Aryal

Work responsibly, Minister Aryal directs employees

Kathmandu, August 3 Minister of Land Management, Cooperatives and Poverty Alleviation Padma Kumari Aryal has directed government employees to work responsibly as the ministry has the responsibility of protecting the property of over 30 million people of the country. She said this at the annual Read More...

PM visits under-construction museum at his private residence

Bhaktapur, August 3 Prime Minister and Co-chair of the ruling Nepal Communist Party (NCP) KP Sharma Oli today visited his private residence at Balkot and met with people from different walks of life. This is the third time the prime minister has visited his private residence after being electe Read More...

‘Harsher punishment against acid attackers’

Kathmandu, August 3 Women and Social Welfare Committee of the House of Representatives has directed the home ministry to make some amendments to the legal arrangement and punishment related to incidents of acid attack, pointing out the need of timely revision. After the discussion held on ‘a Read More...

Flood victims deprived of relief in Kailali

Dhangadi, August 3 Flood victims of Kailali’s southern region have complained that they have not received relief for the past six days. The victims who were displaced and are staying in the open now are making do with noodles, biscuits and water provided by local levels concerned and various Read More...

Status of Province 1 forests improving

The House panel listed positive effects of proper forest management Biratnagar, August 3 The implementation of scientific forest management programme has led to improvement in the status of forests in eastern Nepal. Increase in revenue collection, replacement of timber import, gradual increas Read More...