Payment for the claims in the nonlife insurance companies has increased by 4 fold

Recent data shows the payment for the claims in the nonlife insurance companies has increased by 4 times. In the last fiscal year 2071/72, the payment from non life insurance to the claimants increased by 3.82 times and reached up to Rs 5 arba 10 crore. According to Chandra Singh Saud, CEO of Nepal Insurance,”Due to the devastating earthquake of Baisakh there has been remarkable claimed payment from last year.” In the Fiscal year 2070/71, the claimed payment was Rs 1 arba 33 crore. He added the payment for the claims will increase in the upcoming fiscal year. The effect of devastating earthquake has shown direct impact in the insurance sector too. As per report, net worth equal to Rs 18 arba has been claimed in the non-insurance companies’ .The earthquake has ruined physical infrastructures in more. Due to this reason, insurance companies have done more payment on Fire Insurance. Vehicle insurance occupies more than 70% of share in the nonlife insurance business. Government’s compulsory imposition on third party insurance has made the vehicle insurance to be the most issued insurance. As vehicles were also ruined in large scale during the earthquake, the payment of Rs 2.7 arba has been done for insured vehicles. Despite of the fact that earthquake has not traumatized the aerial sector; more issued payment is seen in the aerial insurance. In the FY 2071/72, amount worth Rs 60 crore has been paid to the claimants. In comparison to last year the amount is 27 times higher. As per the insurance board the reason for this steep increase may be due to the payments made for the claims filed in the last fiscal year. The full data of the destruction of the big companies from the earthquake has not been available. So, there is huge sum yet to be claimed as the companies take longer time to make report of the destruction. Thus, the payment amount for the claimants may increase in the current fiscal year.