Insurance Companies Pay Nearly Rs 2 Billion in Claims After Gen-Z Protests; Some Yet to Begin Settlement

Nearly Rs 2 billion in insurance claims have been paid so far for damages caused during the Gen-Z protests held on September 8 and 9 (Bhadra 23 and 24) across Nepal. According to data released by the Nepal Insurance Authority (NIA) as of October 14 (Asoj 28), insurance companies have settled or advanced payments totaling Rs 1.95 billion, including partial and advance settlements.

Breakdown of Claim Payments by Category

The NIA report shows that the majority of the paid claims came from property insurance, which accounted for Rs 1.55 billion in disbursements.
Similarly, motor insurance claims amounted to Rs 362.5 million, while engineering and contractor risk insurance claims reached Rs 38.1 million.
In contrast, transport insurance has seen no payments so far, despite several claims being lodged.
Other minor categories together accounted for Rs 2.2 million in disbursements.

This indicates that most of the insured losses were due to property damage and vehicle destruction, both of which were heavily reported during the protests that involved vandalism, arson, and street violence in multiple cities.

Provincial Distribution of Payments

Provincially, Bagmati Province recorded the highest claim payments, with Rs 1.45 billion disbursed — reflecting the concentration of damages in Kathmandu, Lalitpur, and surrounding commercial areas where most of the demonstrations occurred.

In Koshi Province, insurers paid Rs 265 million, while Madhesh Province accounted for Rs 44.2 million in claim payments.
Gandaki Province saw settlements worth Rs 106 million, Lumbini Province Rs 59.6 million, Sudurpaschim Province Rs 18.6 million, and Karnali Province Rs 690,000.

These figures suggest that urban centers with dense commercial and industrial activities bore the brunt of the damage — particularly the Kathmandu Valley, which was the protest epicenter.

Some Insurance Companies Yet to Begin Settlement

Despite clear directives from the Nepal Insurance Authority to begin settlements promptly — even through advance payments — several insurance companies have not yet started compensating clients.
Among them, the Rastriya Beema Company (RBC), National Insurance Company, and Star Micro Insurance Company have not disbursed a single rupee as of the reporting date.

According to NIA records, Rastriya Beema Company has received 246 claims totaling Rs 584.1 million, while National Insurance Company has received 24 claims worth Rs 85.7 million.
Similarly, Star Micro Insurance has registered 9 claims amounting to Rs 7.23 million but has not initiated payment.

The NIA has already issued official instructions to expedite payments, stating that advance settlements were authorized to prevent delays and to assist affected individuals and businesses.
However, the lack of progress from these companies has raised concerns about compliance and customer confidence within the insurance sector.

Major Companies Handling Large Volumes of Claims

In contrast, several major private insurers have actively processed and paid claims, reflecting both their financial capacity and operational efficiency.

• Siddhartha Premier Insurance received 394 claims amounting to Rs 5.48 billion, one of the largest totals among all companies.

• The Oriental Insurance Company registered 98 claims worth Rs 5.24 billion.

• IGI Prudential Insurance handled 215 claims worth Rs 2.79 billion.

• Shikhar Insurance, one of the country’s leading insurers, received 433 claims totaling Rs 2.41 billion.

• Sagarmatha Lumbini Insurance processed 342 claims worth Rs 1.59 billion.

• Neco Insurance recorded 259 claims amounting to Rs 1.15 billion.

Other insurers like Himalayan Everest Insurance, Sanima GIC, United Ajod, NLG Insurance, Nepal Insurance, and Prabhu Insurance have also reported significant volumes of claims ranging from Rs 20 million to Rs 1 billion.

This wide distribution shows that nearly every general insurer in Nepal was affected by the protest-related damage, reflecting the scale of the unrest.

Total Claims Filed: Rs 23.19 Billion Nationwide

The overall damage caused by the Gen-Z protests has triggered an unprecedented wave of insurance claims.
According to the Insurance Authority, a total of 3,163 claims have been filed across 14 general insurance companies and 4 micro-insurance firms, representing a combined insured loss of Rs 23.19 billion.

Breaking it down:

• Property Insurance: 673 claims worth Rs 19.71 billion.

• Motor Insurance: 2,256 claims worth Rs 3.44 billion.

• Engineering & Contractor Risk: 182 claims worth Rs 331.8 million.

• Transport Insurance: 12 claims worth Rs 16.3 million.

• Other Miscellaneous Insurance: 40 claims worth Rs 388.6 million.

The dominance of property and vehicle claims underscores that infrastructure, private property, and automobiles were the primary victims of the violent demonstrations.

Provincial Overview of Total Claims Filed

A closer look at the total claims filed (not yet paid) reveals the scale of impact in each province:

• Bagmati Province: 1,706 claims totaling Rs 17.5 billion — the highest in Nepal.

• Koshi Province: 394 claims worth Rs 2.36 billion.

• Gandaki Province: 213 claims worth Rs 1.71 billion.

• Madhesh Province: 362 claims worth Rs 695 million.

• Lumbini Province: 256 claims worth Rs 471 million.

• Sudurpaschim Province: 204 claims worth Rs 335 million.

• Karnali Province: 28 claims worth Rs 100 million.

This provincial distribution highlights the geographical concentration of protest-related violence, with Kathmandu Valley alone accounting for nearly 75% of total insured losses.

The data paints a clear picture of how deeply the September protests shook the insurance sector.
Total claims of Rs 23 billion reflect not only physical losses but also the financial strain on insurers who must now handle one of the largest mass claim events in recent history.

While prompt payments by leading insurers show operational readiness, the inaction by state-owned and smaller companies reveals structural weaknesses and possible liquidity concerns.
Failure to process claims on time can damage policyholder trust and affect the reputation of Nepal’s insurance market — already facing scrutiny over claim delays and underwriting discipline.

Experts say this event should act as a wake-up call for insurers to build stronger risk-management frameworks, ensure reinsurance coverage adequacy, and develop faster claim-handling mechanisms during crisis events.

The aftermath of the Gen-Z protests has not only tested the resilience of Nepal’s streets but also its insurance ecosystem.
While nearly Rs 2 billion has been paid, a staggering Rs 21 billion remains unsettled — underscoring the long road ahead for claimants and companies alike.

The Nepal Insurance Authority’s continued oversight will be crucial in ensuring transparency, fairness, and accountability across the industry.
For the general public, this incident serves as a stark reminder of the importance of insurance protection — and of the urgent need for the sector to deliver on its promise when citizens need it most.