17 August, Kathmandu. The insurance companies are also going to give advance payment to the affected people for the damage caused in the Bhotekoshi flood on August 10. The companies have agreed to pay in advance as it takes time to fully assess major damages such as hydropower projects and large infrastructures.
According to the Ministry of Finance, the issue of flood damage and insurance claim payment was discussed with the participation of the Ministry of Finance, Nepal Insurance Authority, Reinsurance Company, Insurance Company, Surveyor etc. to facilitate the cash flow to start reconstruction.
In the discussion, Finance Minister Dr. Swarnim Wagle directed to make payment of insurance claims in flood affected areas simple and easy. Insurance companies had earlier paid up to 50 percent of the ascertained loss in advance even when paying claims for damages caused by the Genji movement of August 2082.
Hydropower projects, physical infrastructure, vehicles, agriculture and private property have been damaged due to the devastating floods in Bhotekoshi river. According to the Ministry of Finance, there was a discussion between the relevant sector officials to make the insurance claim payment process more simple, transparent, fair and speedy for the financial revival and compensation of the insured and investors of the flood-affected areas.
A total of 1 trillion 80 billion rupees investment has been lost in various hydropower projects of about 900 MW capacity in Bhotekoshi area. There is a preliminary estimate that other infrastructure and vehicles have also suffered major damage.
According to the Ministry, it has been decided to give advance payment necessary to immediately settle the real and authentic claims without any hassle and to immediately start the reconstruction work of large infrastructures including hydropower.
Similarly, the Nepal Insurance Authority is going to coordinate the surveyor operation to make it transparent and fair. According to the ministry, the service of a foreign expert surveyor can also be taken if necessary during the damage assessment.
Keeping in mind the special circumstances of the disaster, the Nepal Insurance Authority is going to simplify the procedures of the veterans regarding the documents required for the claim process. A special task force will be formed in the Nepal Insurance Authority to monitor the daily situation of Bhotekoshi flood insurance claims and payments, to manage the liquidity of companies and to speed up reinsurance research.
The country is in mourning because of the floods. Let's all join hands in this difficult situation, let the insurance companies apply ointment for the loss of the victims, let's make the payment of claims easy and simple" Finance Minister Dr. Wagle said, "Instead, tell the insurance companies if there is any problem and the government needs to do something." We are ready to help.
According to the Nepal Insurance Authority, according to the preliminary information received up to August 15, a total of 583 insurance claims have been filed due to the flood. The total estimated amount of these initial claims is Rs 25.87 billion. The Ministry has stated that the system of speedy payment for small claims will be adopted by simplifying the procedure in order to avoid delay in payment due to getting bogged down in the paper process for quick claim payment.
According to the ministry, all the parties involved in the discussion have agreed to give advance payment to ease the cash flow of the insured, as it takes time to fully assess the damage to hydropower projects and other large infrastructures. In order to make the operation of surveyors more agile and transparent, the Nepal Insurance Authority is going to arrange the automatic deployment of surveyors.
