Insurers settle 78pc of claim amount

Kathmandu, April 24

Non-life insurers have settled 78.36 per cent of the earthquake-related claims worth Rs 16.83 billion in the two years since devastating Gorkha earthquake of April 25, 2015. However, in terms of number of cases, 95.5 per cent cases have been settled so far.

As per Insurance Board — the insurance sector regulatory authority — 16 non-life insurance companies have settled 16,989 cases, with settlement amount of Rs 13.19 billion as of mid-April.

According to Raju Raman Poudel, director of the Insurance Board, claim settlement of quake-related cases is encouraging and it is in rising trend. “The claim settlement of high rise is still in limbo, which is the reason for better progress in terms of number of cases settled compared to the amount,” Poudel explained.

According to Poudel, the settlement of quake-related claims moved ahead speedily due to necessary facilitation provided by the regulator to the insurers. As per the law, insurers have to take approval from the IB to hire foreign surveyors. The insurance sector regulator, in this regard, permitted the insurance companies to hire foreign surveyors and inform the IB later to expedite the survey works of earthquake claims.

The insurers have received Rs 7.35 billion from the reinsurance companies out of the total Rs 13.19 billion that they have provided in settlement so far.

Lumbini Insurance has settled cent per cent earthquake-related claims. Lumbini had received 880 earthquake-related claims worth Rs 254.4 million, followed by Nepal Insurance. Nepal Insurance has settled 1,639 claims worth Rs 707.2 million out of the total 1,713 clams worth Rs 772 million. However, the Everest Insurance Company has settled only 48.9 per cent of the total claim amount worth Rs 263.35 million so far.

The IB has directed the insurance companies to settle the earthquake-related claims as early as possible.