Insurers to sell new Wildlife Risk Insurance from Friday

Kathmandu, July 15

Nepali insurance industry is selling Wildlife Risk Insurance Policy from July 17, first day of the new Fiscal Year 2026/27.

The Nepal Insurance Authority (NIA) informed on Wednesday that it has approved a Wildlife Risk Insurance Policy following repeated requests from provincial governments, local governments, the Department of National Parks and Wildlife Conservation (DNPWC), representatives of buffer zone user committees and forest user groups, wildlife experts, and residents of wildlife-affected areas to establish insurance coverage against losses caused by wild animals.

"Integrating wildlife-related risks into the insurance system will provide a more effective mechanism for managing such risks," the NIA said in a statement.

Non-life insurance companies and micro non-life insurance companies licensed by the NIA will be authorised to issue the newly announced policy which will be bought at Rs. 1,500. This policy is said to cover personal accident or death with maximum Rs. 1 million, and permanent and temporary disability with maximum Rs. 1 million and Rs. 500,000, respectively.

Likewise, maximum sum insured includes up to Rs. 100,000 for medical treatment of serious injury, and up to Rs. 20,000 for minor injury.

Other coverages include up to Rs. 500,000 for house and physical structures, Rs. 100,000 for livestock, and up to Rs. 50,000 agricultural crops.

Currently, the government compensates the wild-life related damages. It distributes more than Rs. 150 million in relief payments every year to compensate people affected by wildlife-related damage in buffer zones of national parks and reserves as well as in other affected areas. According to the DNPWC, the damage includes loss of human life, injury, destruction of physical property, agricultural crops, and livestock.

Over the past five years, the government has provided about Rs. 780 million in relief payments to victims of wildlife-related incidents.

The new policy will have one year's coverage period and cover risks arising from attacks by 18 species of animals – elephant, one-horned rhino, tiger, bear, leopard, jackal, deer, wolf, wild dog, wild boar, arna (wild water buffalo), crocodile, gaur (Indian bison), python, nilgai (blue bull), monkey, porcupine and blackbuck.

According to the NIA, the coverage for livestock will be limited to animals reared for agricultural purposes, and agricultural crops cultivated by the insured during the policy period will be covered up to the insured amount.

In case of any addition, disposal or transfer of ownership of an insured house, physical structure or livestock, the insured can notify the insurer, and the insurer will transfer the policy to the new owner free of charge.

"The policy will cover damage caused by wildlife attacks to residential houses, whether constructed of concrete, mud, thatch, tin or earth, as well as related structures within the residential premises, including cattle sheds, kitchens, toilets and boundary walls, up to the maximum insured amount," read the statement.

However, the insured must preserve evidence of the loss and may remove damaged property from the site only after the preparation of an official assessment report.

In case of a death of the insured or a member of the insured's family due to a wildlife-related accident, the insurer must pay Rs. 50,000 within seven days of the incident towards funeral and last rites expenses, subject to the policy limit, informed the NIA.

But the insurer will deduct 5 per cent from all other claim payments before settlement other than for claims relating to human death.

The NIA directed the insurers that upon receiving information or notification of a claim, they must initiate the claims process immediately. 

Published in The Rising Nepal daily on 16 July 2026.