Fifteen nonlife insurance companies have received 607 claims totalling NPR2.13 billion (US$20.8 million) from people affected by the floods and landslides that occurred last month.
The claim amount is only one-fourth of the total estimated loss incurred in the Tarai belt due to the floods and landslides, reported The Himalayan Times.
“The low claim amount shows that the insurance uptake in the country is still very low,” said Mr Raju Raman Paudel, director of the Insurance Board — the insurance sector regulator, adding the board will introduce awareness programmes in Tarai areas soon.
The low penetration is seen particularly in the agriculture sector. Among the claims, 26 were related to crop insurance and 40 cases to livestock insurance. The Ministry of Agricultural Development has estimated that the floods and landslides swept away crops worth over INR8 billion during this monsoon. Around 69,600 livestock — including goats, buffaloes, chickens and pigs — with an estimated worth of around INR25 million, were killed, as per preliminary estimates.
Out of the total 17 nonlife firms in Nepal, only Rastriya Beema Company and Prabhu Insurance Company, have not received flood claims. According to the Insurance Board, the claims lodged ranged between INR2.26 million and INR568.4 million for the various individual insurers.