Insurers Pay Just One-Fifth of Gen-Z Protest Claims

More than three months after the government directed insurance companies to make advance payments of up to 50 percent on claims related to damages from the Gen-Z movement, insurers have settled only 22.1 percent of the total claimed amount so far, highlighting slow relief for affected businesses.

According to the Nepal Insurance Authority, non-life insurance companies have paid Rs 5.18 billion against total claims of Rs 23.45 billion filed for material and other damages caused during the protests. The payout represents just over one-fifth of the total claimed amount, despite repeated government instructions to expedite advance settlements.

Following the protests in early September, the government had instructed insurers—through the Insurance Authority—to release advance payments of up to 50 percent to provide immediate relief to industries, businesses and commercial establishments affected by vandalism, arson and other damages. However, official data released on Wednesday show that actual disbursement remains far below the directed threshold.

Out of 3,303 non-life insurance claims, insurers have so far paid Rs 3.82 billion under property insurance and Rs 1.22 billion under motor insurance. Smaller amounts include advance payments of about Rs 75 million for engineering and contract risk insurance, Rs 155 million for transport insurance and around Rs 550 million for other insurance categories.

The Nepal Reinsurance Company has also made advance reinsurance payments of about Rs 3.2 billion to non-life insurers to support claim settlements. The reinsurer has received 2,862 reinsurance claims from 14 non-life insurance companies, amounting to approximately Rs 16.62 billion.

Besides delayed payments, the Gen-Z movement has also exposed a significant gap between actual economic losses and insurance coverage. The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has estimated private-sector damages at Rs 80 billion, while insurance claims stand at only Rs 23.45 billion, suggesting that a large number of affected businesses were either underinsured or had no insurance coverage at all.