Insurers told to settle flood damage claims
Aug 19, 2017-The Insurance Board (IB) has instructed insurance companies to settle claims for damages caused by the recent record floods which submerged large parts of the country, particularly the southern Tarai plains, as soon as possible.
The regulatory body said it had asked insurers to report estimates of insurance claims within a week.
Four days of torrential rains from August 11-14 left 31 districts awash in several feet of water. The disaster claimed 120 human lives, and an estimated 35,000 houses were swept away.
As per the Ministry of Agricultural Development, floodwaters wiped out Rs8.11 billion worth of crops. It said 270,406 hectares of standing crops of paddy, maize, pulses, banana and spices were damaged. Likewise, fishes on 2,224 hectares were lost.
Water entered into 500 factories in the Morang Industrial Corridor. Similarly, hotels and restaurants in the jungle safari destination of Sauraha, Chitwan were flooded.
IB Chairman Chiranjibi Chapagain said the board had hurried insurance companies as they had not yet started the process of claim intimation.
As per the board, insurers may have to pay out compensation for human lives, crops, fisheries, houses and warehouses.
“As the floods have damaged production plants, we assume that insurance claims for losses in warehouses will be significant,” Chapagain said.
According to the IB, home insurance has increased after the April 12 earthquake. Similarly, insurance coverage for farm products like crops, livestock and fisheries has been rising. “Most factories operate on bank loans, and they have to mandatorily insure their production plants and warehouses for their credit application to be approved.”
Chapagain said they had asked insurers to mobilise surveyors immediately to estimate claimable losses caused by the floods. There are 17 non-life insurance companies and 10 life insurers operating in the country. These insurers have appointed a total of 3,000 surveyors.
IME Life Insurance starts operations
KATHMANDU: Newcomer IME Life Insurance started operations on Thursday. IME has become the first to launch services among the 10 new insurance companies that received licences from the Insurance Board recently.
IME has a paid-up capital of Rs1.4 billion while its authorised capital stands at Rs3 billion. The company has aimed to issue 70 percent of the shares to promoters and 30 percent to the public.
According to the company, it will be making an initial public offering worth Rs600 million in the next six to eight months to meet the paid-up capital requirement of Rs2 billion. The Insurance Board has asked life insurers to boost their paid-up capital to Rs2 billion by mid-July 2018. (PR)
Published: 19-08-2017 08:41