The insurance industry in Nepal has settled less than 50% of the total COVID-19 claims lodged till date causing huge distress to policyholders leading to government intervention in the matter.
A total of 17,235 claims have been submitted with the various insurers in the country out of which only 8,145 claims worth $7.2m has been settled till date. With the COVID-19 pandemic continuing to spread across the country, the number of claims being lodged with insurers are also increasing by the day. This delay in claim settlement has created a very negative image of the insurance industry across Nepal resulting in the intervention of the country’s Finance Minister in the matter, who requested insurers to settle all genuine claims within three days.
In April this year, all 20 non-life insurers in the country were asked by the insurance regulator to market COVID-19 specific health insurance plans that would cover the individual against any emergency arising from COVID-19. To date, around 1.71m policies amounting to $8.4m were sold by insurers across the country.
The policy named ‘COVID-19 insurance scheme’ is classified into two categories and citizens have the option to select between individual and family plans. Under category A, for sum assured of $836, the premium amount for individuals is $8 and for the family plan is $5. For category B, for sum assured of $418, the premium amount for individuals is $4 and for the family plan is $2.5. Claims under this policy are to be settled within seven days of submission of all documents.