Over NRs 23 billion in insurance claims, nearly 2 billion paid out

Following the September unrest, insurance companies have received claims totalling NRs 23.2 billion for damages to physical property. As of October 14, NRs 1.95 billion have been paid, according to the Insurance Authority.

Among the payments made so far, property insurance accounts for the largest share at NRs 1.55 billion, followed by motor insurance at NRs 362.53 million, engineering and contractor insurance at NRs 38.15 million, and NRs 2.28 million under other categories. No payments have been released under transit insurance to date.

A total of 3,163 claims have been filed, with around 92% of them under property and motor insurance combined. Many large claims remain unpaid as companies await detailed loss assessment reports from surveyors, while most of the payments made so far are advance settlements.

By province, Bagmati leads with 1,706 claims (54% of the total), followed by Koshi (394), Madhesh (362), Lumbini (256), Gandaki (213), Sudurpaschim (204), and Karnali (28).

FNCCI estimates total losses from the September upheavals at around NRs 80 billion, of which only 20–25% of assets were insured. Excluding a few large claims, insurance coverage likely extends to just 12–13% of total damage. Insurance companies expect the total value of claims to reach NRs 25 billion as additional claims are filed. Public properties, meanwhile, were largely uninsured, leaving the government without any mechanism to cover these losses.  

Earlier, the Ministry of Finance introduced a policy allowing affected businesses to receive advance payout of up to 50% of their claims, with surveyors deployed immediately to assess damage. While insurers are permitted to receive up to 50% of the reinsurance amount in advance.

In addition, in its new guidelines to secure funds for rebuilding damaged infrastructure and supporting the upcoming election, the ministry has mandated proper insurance coverage of government property and vehicles moving forward.