Before Bhote Koshi Claims Are Settled, Budhi Gandaki Flood Adds Pressure on Non-Life Insurers
While the assessment of claims from the Rasuwa Bhote Koshi flood is still ongoing, the severe flood in the Budhi Gandaki River in Gorkha has created additional claim risks for non-life insurance companies. The Budhi Gandaki flood has caused massive damage to hydropower projects, bridges, vehicles, and private property, which is certain to further increase the financial liability of the insurance sector.
Kathmandu. While the assessment for compensation of last month's flood in the Bhote Koshi River is still ongoing, the severe flood in the Budhi Gandaki River in Gorkha is set to create additional financial pressure on non-life insurers.
The thick muddy landslide and flood in the Bhote Koshi River in Rasuwa on Bhadra 10 caused billions in damage to hydropower projects, road infrastructure, and private property, resulting in huge claims on non-life insurance companies. As the assessment and settlement process continues, the new disaster in the Budhi Gandaki River is set to add further financial liability to the insurance sector.
Significant damage has occurred to hydropower projects, vehicles, under-construction bridges, and private and commercial buildings in the flood-affected areas of Gorkha. Since risk insurance related to hydropower projects, vehicles, and under-construction bridges is mandatory, pressure of claims on non-life insurers is certain.
Before the wounds of the human and massive property loss caused by the severe flood in the Bhote Koshi River in Rasuwa could heal, another major disaster has struck the Budhi Gandaki River in Gorkha district due to a landslide and avalanche.
According to the situation report of the National Disaster Risk Reduction and Management Authority, on Ashwin 25 at around 5:30 AM, a landslide from Siringe Himal between Lokpa and Chumling in Chumanubri Rural Municipality 6 in Gorkha blocked the local Udangulung stream and the Budhi Gandaki River, causing a severe muddy flood.
Due to the flood, a total of 5 people—2 women and 3 men from Ungilung in Chumchet, Chumanubri Rural Municipality 6—are still out of contact. 95 people, including 9 foreign nationals, have been safely rescued from various remote flood-affected areas via 4 helicopters of the Nepali Army. Among government security forces, only the Nepali Army has helicopters.
According to preliminary details, the thick muddy flood has caused massive damage to infrastructure and private property along the Budhi Gandaki River. 2 concrete bridges, 2 suspension bridges, and 1 Bailey bridge have been swept away or damaged by the flood. 3 hydropower projects in the area have been damaged.
A total of more than 43 houses have been fully or partially damaged across various rural municipalities. In addition, 5 Havan Kunds, 2 sheep sheds, 4 vehicles, 5 school buildings, and 12 pig sheds and warehouses have been damaged. Furthermore, more than 11 drinking water projects in Bishaltar, Manpang, Majhintar, Pipalta, among others, have been affected and damaged by the flood.
Displacement status:
- Chumanubri Rural Municipality (Ward 3): 151 people affected, 43 families displaced
- Dharche Rural Municipality (Wards 1, 3, 5): 126 people affected, 39 families displaced
- Arughat Rural Municipality (Wards 3, 5): 130 people affected, 64 families displaced
- Tripurasundari Rural Municipality (Ward 2 – Dhading): 239 people affected, 58 families displaced
The Authority has informed that more than 703 security personnel from the Nepali Army, Nepal Police, and Armed Police Force have been deployed for search, rescue, and relief operations.
Currently, under the presence of the Home Minister and the head of the National Disaster Risk Reduction and Management Authority, on-site relief, tents, food, medicine, and essential supplies have begun to be transported through the Disaster Response Command Post.
Photo Source: Nepali Army