Kathmandu. The Nepal Insurance Authority (NIA) has issued a new procedure to provide relief to the insured people affected by the floods in Rasuwa and other districts.

The authority has implemented the ‘Rasuwa Flood Claim Payment Summary Procedure 2083 BS’ to make the claim process of the affected insured faster, simple and transparent.

It came into effect after the Board of Directors of the Authority approved the procedure on September 22. According to Section 170 of the Insurance Act, 2079 and Rule 92(5) of the Insurance Regulations, the procedure has been brought to address special circumstances.

According to the new procedure brought by the authority, there will be no need to appoint a separate surveyor for insurance claims of normal nature up to Rs 5 lakh. Provision has been made that the insurer can inspect the damage through its own staff and settle the claim by completing the necessary procedures.

Similarly, the government has made a provision to pay up to 50 percent of the estimated liability in advance to provide immediate relief to the insured people affected by the floods.

The insurer will have to provide such advance amount on the basis of the surveyor’s preliminary report or available evidence. Even in the case of fully damaged vehicles, up to 50 percent of the insured or market value can be paid in advance.

The insured will not be deprived of the claim even if the insurance policy, bill, receipt, police report and other physical documents are destroyed or lost due to the flood. The work procedure provides that the claim can be settled on the basis of available photos, videos, bank details, tax records and government or electronic evidence.

Similarly, the claim cannot be rejected only on the basis of the expiry of the deadline if the deadline for giving initial notice of the claim due to floods has been exceeded. In the case of a person who has gone missing due to floods, the insurance claim can be paid on the recommendation of the competent authority and the self-declaration of the heir.

Similarly, in case of foreign nationals who die in floods, the insurance claim can be paid in Nepali rupees through the concerned embassy.

The flood-affected insured will be able to submit the details of their losses to the insurer through written, oral or electronic means. This will also make it easier for the insured who cannot reach the office or the concerned agency immediately due to the disaster to participate in the claim process.

However, if the insurance claim is found to have been paid by submitting false or false details, then action will be taken as per the law. In such a situation, the insurer can also recover the amount that has already been paid.