The Nepal Insurance Authority (NIA) has relaxed insurance claim procedures to ensure faster compensation for victims of the devastating Rasuwa flood of August 26.
Under a special work procedure issued by the NIA, insurers have been instructed to waive standard requirements related to advance notification and claim submission deadlines for flood victims in Rasuwa. Insurance companies must accept and process claims even when policyholders report losses after the prescribed deadlines, considering the extraordinary circumstances caused by the disaster.
The new procedure also allows insured individuals to report damages verbally or through digital channels, in addition to written applications. Once a loss is reported, insurance companies must immediately issue a claim registration number and begin the loss assessment process.
The NIA has also simplified documentary requirements for affected policyholders. Where original documents have been lost or destroyed in the floods, insurers can process claims using available photographs, videos, digital records, stock declarations submitted to banks and financial institutions, tax and VAT documents, and other evidence issued by government agencies.
To provide immediate financial relief, insurers have been instructed to make advance payments of up to 50 percent of the estimated liability based on a surveyor’s preliminary assessment.
For claims of up to Rs 500,000 that do not involve technical complexities, insurance companies can settle the claims immediately based on assessments conducted by their own staff, without requiring an external surveyor.
The procedure also provides flexibility where obtaining a police report is not possible. In such cases, evidence and verification from local governments or other authorized government agencies may be accepted as the basis for processing and settling insurance claims.
The measures are intended to reduce procedural delays and enable flood-affected policyholders to access insurance compensation more quickly in the aftermath of the disaster.
