Insurance Payouts Begin for Losses Incurred During Gen Z Movement

Insurance companies have started disbursing claims for losses incurred during the Gen Z movement, with smaller claims being fully paid and larger claims receiving partial payments in advance.

According to sources at the Nepal Insurance Authority (NIA), while formal records of payments have not yet been submitted, approximately Rs 1.50 billion has been disbursed as of Wednesday.

“Companies are currently only submitting claim details,” a source said. “However, insurance companies have reportedly disbursed over Rs 1.50 billion through settlement of small claims and advance payments on larger ones.”

A total of Rs 23.39 billion in claims has been filed across 14 non-life and four micro-insurance companies. The NIA reported 2,988 claims had been received as of September 24. Siddhartha Premier Insurance, which received the highest claims of Rs 5.45 billion, has so far paid Rs 558 million.

Birendra Chhetri, CEO of Siddhartha Premier Insurance and also the chairman of the Nepal Insurers’ Association, explained that companies are settling small claims quickly and providing advance payments for larger claims. He noted that insurance companies have often been criticized for delays in claim settlements, making this an opportunity to gain public trust. “Currently, everyone is closely evaluating the role of insurance companies,” Chhetri said. “Prompt claim settlement is a chance to restore the confidence of policyholders.”

Most non-life insurers have issued statements on their websites expressing readiness to expedite claim payments.

Regulator Directs Up to 50 Percent Advance Payment

Meanwhile, NIA has instructed companies to provide up to 50 percent of the claim amount as an advance, based on preliminary assessment reports. Companies have also been directed to immediately deploy surveyors to verify damages and, if necessary, obtain up to 50 percent of estimated liability from reinsurers for advance payments.

Earlier, the Cabinet meeting on Sunday directed the NIA to allow advance payouts of up to 50 percent to industries, businesses, and professional establishments affected by the Gen Z movement.

Claims arising from the movement will be covered under property insurance, specifically under riot and terrorism risk. While this coverage is mandatory under property policies, reinsurance is shared between Nepal Reinsurance Company and the individual insurers. Insurers retain 35 percent of risk for policies up to Rs 100 million and cede 65 percent to Nepal Reinsurance. Nepal Reinsurance will bear its own liability except for catastrophe retrocession arranged with foreign reinsurers.