Insurance Authority eases claim procedures and extends repayment deadlines for flood victims

Kathmandu, November 4, 2026 — The Nepal Insurance Authority has directed life and micro-life insurance companies to simplify claim settlements and provide additional time for premium and loan repayments to policyholders affected by the August 26 floods in the Bhote Koshi, Trishuli and Narayani river basins.

Through an eight-point circular, the authority introduced simplified procedures for death claims, policy surrenders, policy loans and maturity payments to reduce difficulties for affected customers.

Under the new provisions, claimants can submit a simple application stating the insured person’s name, date and cause of death, policy number and their relationship with the deceased.

Documents issued by government agencies, including citizenship certificates, national identity cards, driving licences, passports and land ownership certificates, can be used to verify identity and relationships. Recommendations from local governments or court declarations will also be accepted as proof of death or disappearance.

Insurance companies have been instructed to settle claims using their existing records if original policy documents were destroyed in the floods. They must also provide replacement policy copies free of charge upon request and assist policyholders in updating records if company documents have been lost.

Policyholders affected by the floods who cannot pay premiums or loan instalments on time will receive a six-month extension. No interest or penalties will be charged during the extended period.