KATHMANDU, June 8: The Nepal Insurance Authority (NIA) has been receiving an overwhelming number of complaints related to insurance claims settlement and service delivery, while the regulator’s pace of resolving them remains sluggish.
According to recent records maintained by the NIA, a total of 149 new complaints were registered in the first ten months of the current fiscal year (FY) 2025/26. This figure is lower compared to 235 cases registered during the same period last fiscal year. Of the new cases, 104 were filed at the NIA’s central office in Kathmandu, while the remaining 45 were lodged in provincial offices.
Despite the decline in new complaints, the regulator is burdened with 394 unresolved cases carried over from previous years. With the addition of fresh complaints, the NIA currently has 543 cases under its jurisdiction as of mid-May.
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To address the growing backlog, the NIA last year established a separate judicial bench to handle insurance claim disputes. Under this structure, hearings are conducted in a court-like modality, with lawyers representing both the insured and insurance companies.
So far, the NIA has resolved 157 complaints. Of these, 117 cases were settled through formal decisions, while 40 were resolved by mutual agreement between the parties. At present, 386 complaints are under review by the para-judicial body of the NIA and are awaiting decisions.
NIA records indicate that most complaints are related to non-life insurance companies. In many cases, surveyors have been accused of underrating damages, while insured parties have been found inflating claim amounts.
Although the law empowers the NIA to resolve disputes through mediation, delays in finalizing cases have compelled many parties to take their disputes to the High Court and the Supreme Court.
