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Will insurers advance payments for flood damage in Rasuwa, as they did during the Gen Z movement?
🇳🇵 Nepal /Disasters & Emergencies

Will insurers advance payments for flood damage in Rasuwa, as they did during the Gen Z movement?

From OnlineKhabar English · () English

Translated from English and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Ongoing story
  • Nepal’s Insurance Authority says insurers can advance up to 50% of estimated liabilities to policyholders affected by the Aug. 27 Rasuwa flood.
  • The authority says advance payments would support reconstruction, while a Cabinet directive could make the process easier.
  • Insurers are still assessing damage to hydropower projects, roads, vehicles, agricultural assets and other insured property.

People whose insured property was damaged in the Aug. 27 Rasuwa flood could receive advance payments as reconstruction begins. Nepal’s Insurance Authority says insurers can pay up to 50% of an estimated liability under the Insurance Claim Payment Guidelines 2081.

Sushil Dev Subedi, executive director of the authority, said the process should not pose major difficulties. He noted that insurers made similar payments during the Gen Z movement on Sept. 8 and 9, after the Council of Ministers ordered them to advance 50% of liabilities. Domestic reinsurers then provided advance payments to insurers, who paid policyholders.

Subedi said a new Cabinet decision would make the Rasuwa process smoother, but the authority can facilitate payments under the existing guidelines. If the government directs the state-owned Nepal Reinsurance Company to act, that company would also face pressure to provide support. Nepali insurers must reinsure 20% of their business with the company.

There will be no problem making advance payments to affected policyholders in the Rasuwa flood either.

— Sushil Dev SubediThe Nepal Insurance Authority executive director said existing rules allow insurers to make advance payments.

The scale of the flood damage is still being established. Sunil Ballav Panta, secretary-general of the Non-Life Insurers’ Association, said reported losses include hydropower projects, access roads, vehicles, transit facilities and other transport assets. Insurers have not yet identified all damaged insured property, and information about livestock remains unavailable.

Claims involving hydropower facilities will depend on expert assessments of machinery and equipment, including whether projects suffered partial or total destruction. Panta said rescue and loss prevention remain the immediate priorities, so property valuations and detailed damage records have not yet been completed. Insurers and surveyors are expected to work together, with reinsurers assisting if necessary.

We still haven’t identified exactly what insured properties have been damaged by the flood.

— Sunil Ballav PantaThe Non-Life Insurers’ Association secretary-general described the continuing damage assessment.
About this summary

Originally published by OnlineKhabar English in English. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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