जेनजी आन्दोलन : नेपालको बीमा इतिहासकै सबैभन्दा ठूलो दाबी हुनेGenZ Protests Trigger Nepal’s Largest Insurance Claim Crisis

The GenZ protests of September 23–24 have left Nepal reeling not only socially and politically, but also financially. The wave of vandalism, arson, and looting has resulted in damages so vast that insurers are calling it the single largest insurance claim event in the country’s history.

According to Birendra Baidawar Kshetri, President of the Insurance Association of Nepal and CEO of Siddhartha Premier Insurance, the financial burden could even exceed the payouts following the 2015 earthquake. “The biggest claims are expected from Bhatbhateni Superstores and Hilton Hotel,” he said.

Bhatbhateni, Nepal’s largest retail chain, has seen 21 of its 28 outlets damaged, with 12 completely destroyed. The flagship stores in Naxal and Chucchepati were reduced to ashes, while Maharajgunj and Koteshwor branches also suffered heavy destruction. Outside the Valley, stores in Dharan, Biratnagar, Damak, and Birtamod were burned down, leaving the retail giant devastated.

Hilton Hotel alone has reported losses worth NPR 8 billion. Although the hotel is insured with Oriental Insurance, only NPR 3 billion is reinsured, meaning a major portion of the financial liability will directly fall on the insurer itself.

Insurance companies have begun registering claims, but not all damages will qualify for payouts. Most government buildings, including Singha Durbar, the Parliament, and even the Supreme Court, remain uninsured and therefore ineligible. The same is true for political party offices and private residences, which were among the worst-hit during the protests.

For private homes, coverage exists only where mortgages are tied to banks, and even then, most properties are underinsured. Homeowners typically insure only up to the value of their loan, not the full property value, meaning compensation will cover only a fraction of the actual losses.

The situation is similar for vehicles. Motor insurance in Nepal does not automatically cover riot or terrorism-related risks, and most owners only opt for third-party liability coverage. As a result, despite widespread destruction of vehicles, insurers expect only a small number of claims.

The biggest valid claims will likely come from industrial and commercial properties. Businesses usually hold not only property insurance but also consequential loss (business interruption) coverage, which compensates for losses incurred during the months of shutdown. Officials estimate such claims could extend for three to six months, adding a significant burden on insurers.

Nepal Reinsurance Company, the national reinsurer, will shoulder much of the payout. Under current rules, for claims up to NPR 1 billion, Nepal Re covers 65% while the primary insurer bears 35%. Claims between NPR 1 billion and NPR 6 billion, however, are fully reinsured. Still, not all destroyed properties had riot or terrorism coverage. In such cases, insurers—not Nepal Re—must pay the claims themselves.

The Hotel Association of Nepal (HAN) estimates damages to over two dozen hotels across the country, with initial figures surpassing NPR 25 billion. More than 2,000 workers now face job insecurity during the festive season, as hotels cannot resume operations until reconstruction is complete.

The GenZ protests, driven by anti-corruption anger, have now evolved into a financial crisis for insurers, reinsurers, businesses, and workers alike. As billions in claims pile up, the episode may force Nepal’s insurance sector to rethink its structure, coverage mandates, and preparedness for future political and social upheavals.