KATHMANDU, Jan 1: Nepal Insurance Authority (NIA) has been witnessing an increasing number of complaints against domestic insurers while the regulator is working at a snail’s pace to resolve the disputes.
The records with the NIA show that it is yet to solve 89.25 percent of the pending cases. In the first five months of the current fiscal year (FY), the sector’s regulator issued its verdicts in 33 disputes while facilitating reconciliation in 16 other cases.
As of mid-December, the NIA was handling 456 complaints. Of the total cases, 394 were from the unsolved cases carried over from FY 2024/25 and 62 were the new cases registered in the first five months of the current FY.
Nepal Insurance, IME General Insurance and Prudential Insurance...
Amid growing dissatisfaction among policy holders regarding the delay in claims settlement, the NIA set up a judicial bench some eight months ago. The law has given authority to the NIA to resolve disputes through mediation. The NIA has committed to maintaining transparency and to expedite the settlement process of the insurance claims.
The judicial structure is envisioned to hear cases in similar modality of a court, in which the hearings will be carried out by concerned lawyers in the presence of the insured and the insurer.
According to an NIA official, resolving insurance-related cases has been delayed of late due to the delay in appointment of the vacant seats at the NIA board.
Meanwhile, insurance companies reportedly settled insurance claims worth Rs 28.83 billion during mid-July and mid-December this year. Of the amount, life insurers paid Rs 18.42 billion against 90,414 units of insurance policies. Likewise, non-life insurers settled claims worth Rs 10.41 billion against 56,240 claimants.
According to the NIA, the insurance companies are yet to settle claims totaling Rs 54.89 billion. Of the amount, life insurers have been left to settle Rs 5.09 billion, whereas claims worth Rs 49.79 billion have been pending under the heading of non-life insurance.
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