Insurance Claims from Gen-Z Unrest Exceed Rs 22 Billion

Insurance claims filed after widespread arson and vandalism during last month’s Gen-Z protests have climbed past Rs 22 billion, according to the Nepal Insurance Authority.

The authority said total claims reached Rs 22.26 billion as of September 21, up from Rs 20.7 billion in mid-September. Between September 8 and 21 alone, 14 non-life insurers and four micro-insurance companies received 2,478 applications related to damages from the protests.

This is the largest single-incident insurance payout in Nepal’s history, surpassing claims from previous disasters. The 2015 Gorkha earthquake generated Rs 16.5 billion in claims, while Covid-19 in 2020 led to a similar amount. Floods and landslides in late September 2024 resulted in Rs 12.27 billion in claims, and the 2024 Kathmandu Threekune unrest brought Rs 45 million.

The Gen-Z protests of September 8–9 targeted major businesses and infrastructure. Properties damaged included Hotel Hilton Kathmandu; 21 outlets of Bhatbhateni Superstores; Ncell’s central office; Global College; Central Business Park in Thapathali; Hyundai, Suzuki, and Tata showrooms; Chaudhary Group’s factory; and cable-car stations in Chandragiri and Maulakalika. Numerous private residences and corporate offices were also vandalized.

The Federation of Nepalese Chambers of Commerce and Industry estimates total private-sector losses at around Rs 80 billion. In one high-profile theft, 18 kilograms of gold and Rs 50 million in cash were stolen from the Baneshwar branch of Rastriya Banijya Bank.

Among insurers, the Oriental Insurance Company’s Nepal branch received the highest single-company claim at Rs 5.22 billion, including coverage for Hilton Kathmandu. Siddhartha Premier Insurance logged the second-largest claim of Rs 5.08 billion, mainly from Bhatbhateni Group outlets and CG Digital Park. Shikhar Insurance recorded the highest number of claims at 374. By policy type, property insurance accounted for Rs 18.61 billion of total claims, while Bagmati Province alone saw Rs 17.97 billion in claims.

Because the damages fall under riot and terrorism risk, the burden will be shared between domestic insurers and Nepal Reinsurance Company, as reinsurance for this category is not fully ceded abroad. Local insurers retain 35% of such risk on policies up to Rs 100 million, passing the remaining 65% to Nepal Re.

Nepal Re CEO Surendra Thapa said the company has arranged catastrophe retrocession with firms including Hannover Re, ensuring capacity to settle claims. “We have adequate international reinsurance backing, so payouts will not face delays,” he assured.

Industry experts, including Nepal Insurers’ Association president Birendra Baidwar Kshetri, expect total claims to stabilize around Rs 20–25 billion, noting that most large claims have already been filed.