Insurance Companies Struggle to Settle GenZ Protest Damages

Insurance companies have settled only around 7 percent of the total claims filed for damages caused during the GenZ protests, despite the government’s instructions to provide up to 50 percent of the insured amount as advance payment.

According to data published by the Nepal Insurance Authority, insurance companies received claims worth Rs 23.22 billion as of October 9. Out of this, Rs 1.58 billion has been paid so far as advance and partial settlements. The Authority stated that companies have fully settled smaller claims while making partial payments on larger ones.

The government had earlier directed the Authority to ensure advance payments of up to 50 percent of insurance claims to support industries, businesses, and commercial establishments affected by the protests. Following this, the Authority issued a circular instructing insurers to expedite the payments accordingly.

Siddhartha Premier Insurance received the highest number of claims, amounting to Rs 5.61 billion, and has settled about 11 percent (Rs 594.4 million) so far. In contrast, Trust Micro Insurance, which received the least number of claims, has already settled 45 percent of its total claims.

Birendra Chhetri, president of the Nepal Insurers’ Association, said companies are prioritizing claim settlements to retain policyholders’ trust. However, he noted that the high volume of large claims and the domestic reinsurance arrangements have created liquidity management challenges for insurers.

A total of 2,710 claims have been assigned to surveyors for assessment and monitoring. So far, surveyors have submitted 374 reports to the respective companies, according to the Authority.

So far, a total of 3,099 insurance claims have been filed. Of these, 653 are property insurance, 2,206 vehicle insurance, 190 engineering and contractor’s risk insurance, 12 transport insurance, and 38 other categories.

Province-wise, 396 claims have been filed in Koshi, 355 in Madhes, 1,669 in Bagmati, 212 in Gandaki, 246 in Lumbini, 22 in Karnali, and 199 in Sudurpaschim.

Executive Director of the Authority, Sushil Dev Subedi, said some duplicate entries in the initial reports had inflated the claim figures, which have now been corrected.

Currently, 18 non-life insurance companies, including micro-insurers, are operating across the country.

According to the Federation of Nepalese Chambers of Commerce and Industries, preliminary estimates put private sector losses from arson, vandalism, and looting during the Gen Z-led protests on September 8–9 at around Rs 80 billion.

Nepal’s tourism industry alone suffered an estimated Rs 25 billion (about USD 190 million) in losses following the nationwide protests.