Only 17 Percent of Gen-Z Protest Insurance Claims Settled So Far

Nearly three months after the government directed insurers to make advance payments of up to 50 percent on Gen-Z protest-related claims, insurance companies have settled only 17.15 percent of the total claimed amount so far, official data show.

Statistics published by the Nepal Insurance Authority (NIA) show that as of November 26, insurance claims worth Rs 2.34341 billion had been filed with insurance companies. However, only Rs 402 million has been paid so far as advance and interim settlements.

The government had directed the Authority to arrange advance payments of up to 50 percent of insurance claims to provide relief to industries, businesses and commercial establishments affected by the protests. Acting on this directive, the Authority also instructed insurance companies to begin advance payments.

However, Executive Director and Spokesperson for the NIA Sushil Dev Subedi said the public has not correctly understood the government’s decision and the regulator’s instructions.

“In practice, the settlement process of non-life insurance claims is complex,” he said. “We have instructed companies to pay up to 50 percent of the amount only after receiving preliminary reports from surveyors. Payments cannot be made solely on the basis of claims filed by the insured.”

Transport Insurance Records Highest Payout

According to the Authority, the highest proportion of payments has been made under transport insurance policies. Under this category, 12 claims amounting to about Rs 16.9 million were filed, of which Rs 4.8 million, or 28.40 percent, has been paid.

In contrast, the lowest payout has been recorded in the engineering and contractor’s risk insurance category. Of the 209 claims worth Rs 550.4 million, only Rs 66.9 million, or 12.15 percent, has been paid.

62 Percent of Payments from Reinsurer

Of the total amount paid by insurance companies for damage caused during the Gen-Z protests, 62 percent has been reimbursed by the Nepal Reinsurance Company.

The reinsurer has provided Rs 2.5179 billion as advance payments to non-life insurance companies, the Authority said. However, based on total claims lodged with the reinsurer, only 15.87 percent has been paid so far.

Spokesperson Subedi said that a total of 2,860 claims worth around Rs 15.81 billion have been filed with the reinsurance company.

Flood and Landslide Damage: Just 0.30 Percent Paid

Meanwhile, insurance payouts for physical and other damage caused by continuous rainfall, floods and landslides in early October have been even lower. Of the 744 preliminary claims worth Rs 3.7742 billion, only Rs 11.4 million, or 0.30 percent, has been paid so far, the Authority said.