The Nepal Insurance Authority (NIA) has been facing a growing burden of insurance-related complaints, particularly concerning claim settlements and service delivery, while progress in resolving the cases has remained slow.
According to recent records of the regulator, 149 new complaints were registered during the first ten months of the current fiscal year 2025/26. This is lower than the 235 complaints recorded during the corresponding period of the previous fiscal year.
Of the newly registered cases, 104 were filed at the NIA’s central office in Kathmandu, while the remaining 45 were lodged through provincial offices.
Over 500 Cases Currently Under NIA Jurisdiction
Despite the decline in new complaints, the authority continues to grapple with a large number of unresolved cases carried over from previous years.
As many as 394 cases remained pending from earlier periods. Combined with the newly filed complaints, the total number of cases under the NIA’s jurisdiction stood at 543 as of mid-May.
Separate Judicial Bench Established
To deal with the mounting backlog, the Nepal Insurance Authority established a separate quasi-judicial bench last year to hear disputes related to insurance claims.
Under this arrangement, hearings are conducted in a court-like manner, with legal representatives appearing on behalf of both policyholders and insurance companies.
So far, the regulator has disposed of 157 cases. Among them:
- 117 cases were settled through formal decisions;
- 40 cases were resolved through mutual agreement between the disputing parties.
However, 386 complaints are still under review by the authority’s quasi-judicial body and are awaiting final decisions.
Non-Life Insurance Complaints Dominate
According to NIA records, the majority of complaints involve non-life insurance companies.
In many disputes, surveyors have been accused of undervaluing losses and damages, while policyholders have been found to have exaggerated claim amounts. These differences have contributed to prolonged disputes and delayed settlements.
Delays Driving Cases to Higher Courts
Although the law authorizes the Nepal Insurance Authority to resolve disputes through mediation and adjudication, delays in reaching decisions have prompted many aggrieved parties to seek legal remedies through the High Court and the Supreme Court.
The growing backlog highlights the challenges facing Nepal’s insurance regulator as it seeks to improve claim settlement mechanisms and strengthen public confidence in the insurance sector.
