Insurance Claims from Gen Z Unrest Expected to Exceed Rs 10 Billion

Insurance claims stemming from the violent Gen Z protests are expected to surpass Rs 10 billion (about USD 75 million), as assessments of extensive damage to commercial and private property continue.

According to insurance officials, the September 9 unrest caused large-scale arson, vandalism, and looting in Kathmandu and other districts. Bhatbhateni Supermarket reported that 21 of its 27 outlets were attacked, with 12 completely destroyed by fire. Major damage was also reported at Hilton Hotel, Ncell’s Lainchaur head office, Global College, Central Business Park in Thapathali, and several vehicle showrooms representing Hyundai, Suzuki, and Tata Motors. Chaudhary Group confirmed serious losses at its Satungal data center and electronics factory, while the Chandragiri Cable Car station and numerous private homes and corporate buildings were also affected. Losses outside the Valley are still being tallied, raising the likelihood of even higher total claims.

Bhatbhateni’s properties are insured with IGI, Salico, and Siddhartha Premier Insurance, while Hilton Hotel is covered by The Oriental Insurance. Claims will be settled based on the insured value and verified damage, which falls under riot and terrorism risk. Although property insurance in Nepal requires coverage for such risks, most reinsurance was placed with Nepal Reinsurance Company rather than foreign reinsurers, placing a significant financial burden on the domestic re-insurer. By regulation, insurers retain 35 percent of the risk and cede 65 percent to Nepal Reinsurance, which must meet its share of liabilities apart from any retrocession abroad.

Amid concerns that claims could exceed those following the 2015 earthquake, the Nepal Insurers’ Association convened a meeting Thursday to discuss the potential impact. The association later said companies remain capable of managing payouts. Nepal Insurance Authority spokesperson Sushildev Subedi noted that a precise estimate will only be possible after initial reports from insurers but confirmed that the regulator has directed companies to expedite settlements and provide weekly updates.

The protests, which erupted over social media restrictions and corruption, turned deadly on September 8 when security forces opened fire, killing 19 students. The following day, demonstrators vandalized and set fire to the parliament building, Singha Durbar, and major commercial hubs across the country, inflicting heavy losses on major enterprises including Bhatbhateni, Chaudhary Group, and telecom operator Ncell. Economists warn that the government’s failure to protect private property will undermine investor confidence and weaken Nepal’s economic outlook.

Meanwhile, banks and financial institutions began offering limited emergency services Thursday. The Nepal Bankers’ Association allowed two branches per district to open in Kathmandu, Lalitpur, and Bhaktapur from 10 a.m. to 2 p.m., with further operations dependent on Friday’s security situation. Branch openings outside the Valley are being coordinated with local administrations where no curfew is in effect.

Nepal Rastra Bank also instructed banks, financial institutions, and payment service providers to maintain essential operations with minimal staff, while the Nepali Army assured that banking personnel may travel using official identification.