Kathmandu, September 1
Insurance companies will provide advance payments to those affected by the August 26 Bhotekoshi flood, as full damage assessments for large losses like hydropower projects and major infrastructure will take time to complete.
The Finance Ministry announced the decision after discussions involving the ministry, the Nepal Insurance Authority, reinsurance companies, insurance companies, and surveyors, aimed at easing cash flow and enabling reconstruction to begin quickly.
Finance Minister Dr. Swarnim Wagle directed that insurance claim payments for flood-affected areas be made simple and smooth. Insurance companies had previously advanced up to 50 percent of confirmed damage claims following the Gen-Z movement in September 2025 (2082 BS), setting a precedent for this approach.
Scale of damage
The Bhotekoshi flood caused extensive damage to hydropower projects, physical infrastructure, vehicles, agriculture, and private property.
Hydropower projects in the Bhotekoshi area with a combined capacity of roughly 900 megawatts suffered losses totaling an estimated 180 billion rupees in investment. Preliminary estimates suggest significant additional damage to other infrastructure and vehicles.
Faster claims process
The ministry said it has decided to provide necessary advance payments to settle genuine, verified claims without bureaucratic delay and to allow reconstruction of hydropower and other major infrastructure to begin immediately. The Nepal Insurance Authority will coordinate to make surveyor deployment more transparent and impartial, and may bring in foreign expert surveyors if needed for damage assessment.
Given the extraordinary circumstances of the disaster, the Insurance Authority will simplify existing documentation requirements for claims. A special task force will be formed within the Authority to monitor the daily status of Bhotekoshi flood insurance claims and payments, manage company liquidity, and expedite reinsurance reimbursements.
“The country is in mourning because of this flood. Let’s join hands in this difficult time, let insurance companies help ease victims’ losses and make claim payments simple and smooth,” Minister Wagle said at the discussion, adding that the government stands ready to help if insurance companies face any difficulties.
Claims so far
According to the Nepal Insurance Authority, 583 insurance claims had been filed as of September 15, with a combined estimated value of 25.87 billion rupees. To prevent payment delays from paperwork bottlenecks, the ministry said procedures will be broadly simplified, with a system for faster processing of smaller claims prioritized.
Since full assessment of hydropower and other major infrastructure damage will take time, all parties in the discussion agreed to advance payments to ease policyholders’ cash flow. The Insurance Authority will also arrange for automatic surveyor deployment to make the process more efficient and transparent.
