Rasuwa flood insurance claims can't be denied on limitation grounds alone; 50% advance on initial report

The Nepal Insurance Authority has ruled that claims from policyholders affected by the Rasuwa floods cannot be rejected solely on the grounds that the statute of limitations has expired.

About a month after the flood, the Authority has issued the Rasuwa Flood Claim Settlement Short Procedure, 2083. The procedure applies to policyholders in Rasuwa, Nuwakot, Dhading and Chitwan affected by the flood of Bhadau 10, when the Lhende Khola, Bhotekoshi, Trishuli and Narayani river systems flooded.

The Authority said it will apply only to claims for property, vehicles, projects, business inventory and human losses under policies that were already issued and at risk before the flood occurred.

Under the procedure, policyholders whose vehicles and other property were completely destroyed will receive an advance payment of up to 50% of the estimated liability. Once a vehicle is confirmed completely destroyed, 50% of the amount will be paid immediately. The remaining amount must be paid within 7 days of submitting the registration cancellation certificate.

The procedure states that insurance companies must settle claims in a fast, simple and transparent manner.