International experts will be roped in to survey the damages and physical destruction incurred to commercial buildings and other structures during the Gen Z protests on September 8 and 9.
Insurance companies are planning to hire specialist surveyors from abroad to carry out the structural survey of damaged commercial buildings.
According to the Nepal Insurance Authority (NIA), 18 insurance companies, including micro-insurance providers, have so far collected claims worth Rs 23.22 billion for damages incurred during the Gen Z protests.
Normally, insurance companies use local surveyors to assess the damage and collect data. However, if the damage is extensive or there is a risk of further damage, they opt for expert surveys.
The large commercial buildings badly damaged during the protest in September include Bhatbhateni, Central Business Park, and Hilton Hotel. Since the assessment of this extensive damage requires expert surveyors rather than a local surveyor, the companies are bringing in international specialists.
The NIA reports that it has received two applications requesting approval to hire foreign expert surveyors.
Sabita Thapa, Deputy Director the NIA, confirmed to have received two applications. She stated that the insurance companies will proceed with the damage investigation once the Authority grants approval.
NIA Spokesperson Sushil Dev Subedi shared that there are currently over 1,600 local surveyors available to insurance companies in Nepal, with 500 working actively. While there are enough personnel for general surveys, the lack of specialized expert surveyors necessitates roping them in from abroad. In cases of "Joint Survey," the insurance companies prepare a survey report jointly with local surveyors and foreign experts after receiving NIA approval.
Subedi explained that these expert surveyors are needed to assess not only the current damage but also the potential future harm to the insured property.
Kunal Kayal, Chairman of Sanima Reliance Insurance, stated that specific surveyors are necessary for a detailed study of how the buildings were damaged and what materials were used. He stated that major structures like the Hilton and Bhatbhateni were damaged, including instances of cylinder explosions, and the survey report will determine if the buildings can be rebuilt or if there is a risk of further damage.
The total insurance claims across the country amount to Rs 23.22 billion. Property insurance accounts for the largest share, with claims of Rs 19.06 billion. Of this, insurance companies have paid out only Rs 1.32 billion so far.
Similarly, motor insurance claims total Rs 3.41 billion, with only Rs 249.1 million paid. Furthermore, in engineering and contractor insurance, Rs 8.7 million has been paid against Rs 380.3 million in claims. No claims have been settled for transportation insurance claims of Rs 16.3 million. Only Rs 500,000 has been paid against Rs 353.7 million in other categories.
In total, against the Rs 23.22 billion in claims, only Rs 1.58 billion has been settled so far. Insurance professionals have indicated that the delay in claim settlement is partly due to the requirement to bring in foreign surveyors for the assessment of damages incurred to large commercial buildings.
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