Kathmandu, Sept 8: The devastating Bhotekoshi flood has caused extensive loss of life and property, particularly in Rasuwa, Nuwakot and Dhading, and is expected to increase claims on both non-life and life insurance companies.
According to the latest data from the Nepal Insurance Authority, non-life insurers have received preliminary claims worth nearly Rs 26 billion for flood-related losses. Life insurers have received far fewer claims so far, but companies expect pressure to increase as more victims are identified.
More than 1,300 people have died, and over 5,000 remain missing, according to the latest Nepal Police data. With the number of deaths and missing people still rising, insurers expect more death claims in the coming days.
However, companies say it is too early to estimate the total liability. Families and authorities are still focused on locating missing people and identifying bodies, while insurers are collecting information about policyholders through agents and local branches.
Sanima Reliance Life Insurance CEO Shivanath Pandey said the company had not received any death claims yet, although it was coordinating with agents in affected areas. Reliable Nepal Life Insurance also said no claims had been filed so far, but expected applications after the search for missing people concludes.
Citizens Life Insurance, however, has started receiving a small number of death claims. IME Life Insurance said it had received none so far, noting that death claims require official documentation confirming the death.
Nepal Life Insurance’s Nuwakot branch said many policyholders were believed to have been affected, suggesting claims could rise once their status is confirmed. Sun Nepal Life Insurance also expects claims involving policyholders who remain missing in Dhading.
Despite the expected increase, life insurers say they are financially capable of meeting their obligations. A large number of claims from one area could put some pressure on liquidity and claim ratios, but companies maintain that this would not significantly affect their overall financial condition.
Life insurers are required to pay the insured amount and applicable benefits according to policy terms after a policyholder’s death. Companies regularly set aside funds for such claims.
Non-life insurers could also face substantial liabilities from deaths or accidents involving workers at hydropower projects, industries and other institutions, depending on the type and terms of insurance coverage.
The exact number of flood victims who held life insurance policies remains unknown. Insurers therefore say it is too early to estimate the eventual value of death claims.
People’s News Monitoring Service
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