Insurance companies have paid out nearly Rs 73bn in claims over the first eleven months of the current fiscal year 2024/25. Data released by the National Insurance Authority (NIA), the insurance sector regulator, shows 14 life insurance companies, three micro-life insurers, 14 non-life insurers and four micro non-life insurers settled claims worth Rs 72.94bn in 11 months of the current fiscal year.

While payouts by life insurance companies declined slightly, non-life insurance claims have increased in the current fiscal year largely due to losses from floods and landslides in September last year. In the same period of the previous fiscal year, insurance companies settled Rs 69.98bn in total claims. Life insurers had paid out Rs 52.64bn in claims across 238,608 individual cases by mid-June 2025, down from Rs 53.96bn paid to settle 268,677 cases in the same period last year. This marks an 11.19 percent decrease in the number of claims settled and a 2.45 percent drop in total payouts.

Likewise, non-life insurers paid out Rs 20.30bn in claims across 127,282 cases during the review period. Last year, they had paid Rs 16.02bn for 134,534 claims. Although the number of claims settled dropped by 5.39 percent, the payout amount rose by 26.74 percent. Despite this, pending life insurance claims have risen significantly. As of mid-June, insurance companies had yet to settle 54,422 claims worth Rs 4.58bn. At the same point last year, the number of pending claims stood at 39,287, amounting to Rs 2.87bn. This means the number of unsettled claims has grown by 38.49 percent, and the pending amount has surged by 59.61 percent.

The number and value of unsettled claims have also increased in the non-life segment. By mid-June, non-life companies had 106,757 pending claims worth Rs 30.46bn-an increase of 4.41 percent in the number of cases and 50.38 percent in the total amount. In the same period last year, there were 102,251 such claims amounting to Rs 20.26bn in outstanding amounts.