Kathmandu. The real economic size of the damage caused to physical infrastructure, vehicles and other property by the Bhotekoshi floods is being seen through the insurance claims. The damage caused by the floods from Bhotekoshi to Trishuli and Narayani on August 26 is now visible in the financial liability of the insurance company. The 2,180 insured people affected by the floods have claimed compensation of about Rs 21 billion, of which a large part is from property, engineering and motor insurance.
However, compared to the large size of the claim, the payment so far is only Rs 67.48 lakh. Out of the initial claim of Rs 20.98 billion, property insurance alone has accounted for more than Rs 9.41 billion.
The floods have caused huge losses to hydropower projects, vehicles, houses and other property, and business stocks.
Earlier, the preliminary details of claims worth around Rs 26 billion were made public after the floods, but the latest data of Rs 20.98 billion has been made public by the Nepal Insurance Authority after verification and verification of the details received from the insurance companies.
Director of Nepal Insurance Authority (NIA) Shamba Raj Lamichhane said that there is a shortage of payment due to the arrival of only institutional insurance claims in Rasuwa and Bhotekoshi areas. He said that the general public is still in the stage of rescue and treatment and the insurance claims have not been received from the general public and local businessmen.
{{TAG_OPEN_strong_53}Highest Claims Property Insurance
In terms of type of policy, property insurance has the highest number of claims. Property insurance has an initial claim of Rs 9.41 billion out of 518 claims. Out of this, Rs 38.14 lakh has been paid so far. Similarly, engineering and contractor risk (CAR) insurance has received claims worth Rs 4.41 billion from 165 claims.
In terms of the number of claims, the highest number of 1,066 claims for motor insurance is Rs 3.07 billion. So far, Rs 24.10 lakh has been paid for motor insurance.
Similarly, Rs 2.48 billion was claimed from 104 claims for transport insurance, Rs 1.36 billion from 299 claims for other miscellaneous insurance and Rs 225.2 million from 28 claims under health insurance.
Himalayan Everest Hike
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On a company basis, Himalayan Everest Insurance received an initial claim of Rs 6.27 billion through 159 claims. It was followed by Sanima GIC Insurance with an initial claim of Rs 6.27 billion through 242 claims.
In terms of number of claims, Shikhar Insurance has the highest number of 401 claims with a total of Rs 2,99,54,000. The company has so far paid Rs 26.62 lakh claims.
Similarly, Sagarmatha Lumbini Insurance has claimed Rs 1.93 billion from 207 claims, Siddhartha Premier Insurance has claimed Rs 1.12 billion from 205 claims and Neco Insurance has claimed Rs 1.12 billion from 240 claims.
Similarly, companies like IGI Prudential, United Ajod, The Oriental, Nepal Insurance, Prabhu and NLG have also received claims for damages caused by floods.
Surveyor not required
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In order to provide immediate relief to the flood-affected insured, the Nepal Insurance Authority (NIA) has implemented the ‘Rasuwa Flood Claim Payment, 2083’. According to the procedure, there is no need to appoint an external surveyor for claims up to five lakh rupees which are simple in nature, do not have technical complexities and sufficient evidence is available. In such claims, the insurance company can settle such claims by conducting on-site inspection and damage assessment through its own staff.
Up to 50% Advance Payment
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In order to provide immediate financial relief to the insured who have suffered huge losses, the working procedure has made provision to provide upfront amount up to 50 percent of the estimated liability.
Once the estimated liability is determined on the basis of the surveyor’s initial assessment or available evidence, the insurance company will be able to pay up to 50 percent of it in advance. The amount given in advance will be adjusted at the time of final claim settlement.
Alternative proofs
The procedure also addresses the situation of the physical documents of the insured being destroyed or lost due to floods. In such a situation, the claim process can be proceeded on the basis of photos and videos, digital records, government records, tax details, bank records, audited balance sheets and other credible evidence.
The insurance company cannot reject the claim only on the basis of delay in giving information.
Ease of Missing Person’s Claim
In case of the person disappeared in the floods, if the death is confirmed on the recommendation of the competent authority, the insurance claim can be paid by taking necessary self-declaration and proof from the heir.
The procedure provides that if the insurance company has to reject any claim, it should provide a clear reason to the insured in writing. The authority hopes that this will help in maintaining transparency in the claim settlement process.
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