Nepal insurers see low claim amount despite heavy flooding, landslides

The figure shows insurance uptake remains slow in the country, and education is needed

Nepal insurers see low claim amount despite heavy flooding, landslides

Insurance News

By Paolo Taruc

Heavy flooding and landslides sustained by Nepal last month have led to Rs 2.13bn (about US$ 33.27mn) in insurance claims, according to figures from the country’s Insurance Board.

According to The Himalayan Times, the number is relatively low compared to the total estimated loss wrought by the disasters. The Ministry of Agricultural Development said Nepal sustained over Rs 8bn (about US$ 124.97mn) in damage from the flood and landslides.

“The low claim amount shows that the insurance uptake in the country is still very low,” said Raju Raman Paudel, director of IB, as quoted by the paper. He added the board will introduce awareness programmes in the calamity-hit areas soon.

Insurance firms have been directed to prioritise claims related to the calamities. “We have told them to focus on the claims registered by the marginalised people,” said Paudel.

According to the board, insurers received 607 claims related to the disasters.

“Big agricultural areas are still not covered by insurance, the government should focus its programmes to bring them inside the insurance bracket,” said Vijaya Bahadur Shah, chief executive officer of NLG Insurance Company, as quoted by the report.

At least 1200 died in heavy flooding across South Asia last month, with swathes of Nepal and India underwater. According to UN figures, flooding accounted for 47% of all weather-related global disasters between 1995 to 2015. Of the 2.3 billion people affected, 95% were in Asia.

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Global catastrophe loss estimates announced by Swiss Re

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