Devastating Flood Creates Largest Insurance Liability in Nepal
Summary
The Bhote Koshi and Trishuli floods have triggered Nepal’s largest-ever insurance liability, with preliminary claims reaching 25.87 billion rupees across 583 policies. The government has announced advance payments for insured victims as insurers and the Insurance Authority rush to assess massive damage to hydropower, infrastructure and property.
Key Points
- Preliminary insurance claims from the Bhote Koshi and Trishuli flood have reached 25.87 billion rupees, the biggest liability ever recorded in Nepal’s insurance sector.
- The government will provide advance claim payments of up to 50 percent for insured victims under the Rasuwa Flood Reconstruction Package.
- About 80 percent of the claims are linked to engineering and contractor risk insurance, reflecting heavy damage to hydropower and construction projects.
- Insurers say the sector can absorb the losses through reinsurance, while the Insurance Authority is forming surveyor and monitoring mechanisms to speed up payouts.
