Government Announces Plans to Insure Public Assets

The government has announced plans to insure public assets for the first time, following extensive damage during the Gen-Z protests on September 9. However, a complete record of state-owned property is unavailable with the government.

After the protests on September 9 caused widespread destruction of public property, the Council of Ministers on September 21 decided to initiate insurance coverage for government-owned physical infrastructure and fully insure all government vehicles. The Ministry of Finance has since circulated instructions to all federal ministries, provincial governments, and local bodies to implement the directive.

Although the Public Asset Management System (PAMS) was introduced four years ago to maintain records of public property, many government offices have failed to submit detailed information. According to the last data released two years ago by the Office of the Auditor General, the total value of government assets in about half of the agencies exceeded Rs 180 billion, including Rs 47.2 billion with provincial governments and Rs 23.7 billion with local authorities.

Deputy Auditor General Man Bahadur Magar said the office has yet to verify a comprehensive record of government property. He estimated that the new report, scheduled for publication in the month of Kartik (mid-October to mid-November), will place the total at around Rs 500 billion. Preliminary assessments indicate that damage to government buildings from the recent protests exceeded Rs 100 billion.  

The Gen-Z demonstrations affected major administrative centers, including Singha Durbar, various ministries, the Parliament, the President’s Office, the Supreme Court, district courts, police and district administration offices, and provincial and local government buildings. The lack of insurance for damaged public assets is expected to significantly increase reconstruction costs. On Wednesday, the government announced a physical reconstruction fund to mobilize financial support.

Private-sector losses from the protests have already resulted in insurance claims exceeding Rs 23 billion. Nepal Insurers’ Association President Birendra Khatri said that while insurance can cover risks for private assets, the government will bear the full burden for public property. “Insurers have repeatedly recommended insuring government assets, but the initiative was not implemented. Only after the protests has the government realized the importance of insurance,” he said.

The insurance industry anticipates growth following the government’s announcement. Currently, 14 non-life and four micro-insurance companies operate in Nepal. By mid-July 2025, these companies had insured assets worth Rs 158 billion. Khatri said that including government assets and vehicles in insurance schemes would expand the business, create a positive message about risk protection, and raise public awareness.

Insurance companies in Nepal typically cover risks such as earthquakes, fire, riots, and terrorism under property insurance, while vehicle insurance includes third-party and comprehensive coverage.

Executive Director of Nepal Insurance Authority, Sushil Dev Subedi, said that public assets could now be insured under existing policies or through newly issued policies.

“We have repeatedly proposed annual programmes to insure government structures to expand insurance coverage and raise awareness. After the recent protests, the government has finally acted on these recommendations,” he said.