Kathmandu. Insurance companies have received claims worth Rs 20.98 billion for the damage caused by the floods in the Trishuli and Narayani rivers via Bhotekoshi on August 23. The Nepal Insurance Authority (NIA) has implemented the Rasuwa flood summary payment procedure to make the claim settlement easier and faster.
The NRA has implemented ‘Rasuwa Flood Claim Payment, 2083 BS’ and made arrangements for the early claim payment to the insured people on the basis of evidence of damage.
The procedure has removed the provision of appointing a surveyor on a small amount of claim and has made provision that up to half of the estimated liability can be paid in advance.
According to the procedure, without appointing a surveyor for claims up to five lakh rupees, the insurance company can settle the claim by conducting on-the-spot inspection and damage assessment through its own staff. However, the claim should be simple in nature, there is no technical complexity and sufficient evidence of damage should be available.
Similarly, the insurance company will have to pay up to 50 percent of the estimated liability in advance. The amount so paid will be adjusted at the time of final claim settlement.
The insurance company will not be allowed to reject the claim only on the ground that the insured affected due to the flood has delayed in giving the information of the claim. The claim of the insured who could not give the information in the stipulated time due to special circumstances should also be processed on the basis of available evidence.
Even if the physical documents related to the insurance claim are destroyed due to floods, the claim process can be proceeded on the basis of alternative evidence. The work procedure provides that the photos and videos before the damage, bank valuation report, tax payment details, government records, audited balance sheets and other digital evidence can be relied upon.
Ease of Living Claim
The way for payment of claims has also been made easier in the case of people who have disappeared due to floods. If there is a situation where the death of the person is confirmed on the recommendation of the competent authority, then the insurance claim can be paid by taking a self-declaration from the heir.
This is expected to reduce the procedural complexities that may be seen in the settlement of claims including life insurance of the missing persons.
Similarly, provision has been made for advance payment even if it is confirmed that the flood has swept away the vehicles and caused complete damage. After the necessary proof of cancellation of registration is submitted, the remaining claim amount should also be settled within the stipulated time.
Reason for rejecting a claim
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If the insurance company has to reject any claim, it has to provide a written reason to the insured. The authority hopes that this will make the claim settlement process transparent.
In the case of vehicles that are in the process of being imported due to floods, which are in the customs yard or are yet to be registered with the Transport Management Office, the claim can be settled on the basis of necessary records and evidence.
Although the claim process has been simplified, action will be taken against those who claim payment by giving false or false details, according to the NRA.
Action would be taken as per the prevailing law and the amount paid could also be recovered if the payment was taken on the basis of wrong details.
The floods have damaged hydropower projects, vehicles, business stocks, houses and other property in Rasuwa, Nuwakot, Dhading, Chitwan and other districts. The new procedure aims to simplify the process between the insured, insurance company and reinsurance company to settle the insurance claim of Rs 20.98 billion on time.
