Insurers directed to pay up to 50 percent of claims based on preliminary assessment
KATHMANDU, Sept 29: In a bid to ensure swift compensation for victims of the devastating Rasuwa flood on August 26, the Nepal Insurance Authority (NIA) has relaxed insurance claim procedures, removed reporting deadlines, simplified documentary requirements, and instructed insurers to make advance payments based on preliminary loss assessments.
Issuing a special work procedure, the Nepal Insurance Authority (NIA) has waived the standard requirements for pre-notification and claim submission deadlines for flood victims in Rasuwa. Under the new guideline, insurers are required to accept and process claims even if policyholders report losses after the stipulated timeframe, considering the extraordinary circumstances created by the disaster.
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The guideline allows the insured to report damages not only in writing but also verbally or through digital means. Upon receiving such information, insurance companies must immediately provide a claim registration number and begin the loss assessment process.
In addition to relaxing claim reporting deadlines, the NIA has also simplified documentary requirements. The regulator has introduced provisions allowing claims to be processed on the basis of available photographs, videos, digital records, stock declarations submitted to banks and financial institutions, tax and VAT documents, and other government-issued evidence in cases where original documents have been lost or destroyed in the floods.
Furthermore, insurers have been instructed to provide advance payments of up to 50 percent of the estimated liability based on the surveyor's preliminary assessment so that flood victims can receive immediate financial relief.
For smaller claims of up to Rs 500,000 that do not involve technical complexities, insurance companies may settle claims immediately through assessments conducted by their own staff without requiring an external surveyor.
The procedure also provides flexibility in cases where police reports cannot be obtained. In such instances, evidence and verification provided by local governments or other authorized government agencies may be accepted as the basis for processing and settling claims.
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