Kathmandu. The cabinet meeting held today on the proposal of the Ministry of Finance has announced a business revival package for the businessmen affected by the floods in the Bhotekoshi area of Rasuwa. Under this package, the insured who have suffered losses due to floods will be paid up to 50 percent in advance.

The government has also made arrangements to deploy surveyors through a simplified process to make the assessment of insurance claims for damages caused by floods faster and more effective. This is expected to make it easier to complete the initial assessment of the damage quickly and provide claim payment to the insured.

According to the government’s decision, the insurance company will have to provide a maximum of 50 percent advance claim payment to the insured on the basis of the preliminary evaluation report. Similarly, the reinsurance company will also provide a maximum of 50 percent advance claim payment to the concerned insurance company on the basis of the preliminary evaluation.

In order to make the process of claim payment of flood victims more easy, insurance companies will have to formulate and implement a summary claim payment procedure soon. The government is expected to reduce the time taken for damage assessment and claim payment.

Likewise, an arrangement has been made to amend the related acts, rules and directives to recognize the amount contributed from the Corporate Social Responsibility (CSR) Fund to the Prime Minister Natural Disaster Relief Fund in the fiscal year 2083/84 as CSR expenditure.

The package is expected to provide immediate financial relief to the entrepreneurs and insured affected by the floods and help restart the damaged businesses.