Insurance Claims of Gen-Z Movement Damage of Various Companies Unveiled

12th October 2025, Kathmandu

The recent wave of “Gen-Z” protests and civil unrest that began on Bhadra 23 (September 8, 2025) has inflicted a staggering financial blow on Nepal’s private sector, translating into preliminary insurance claims that have already climbed past the NPR 23 billion mark.

Insurance Claims of Gen-Z Movement Damage

This immense exposure is testing the liquidity and capital of domestic non-life insurers and reinsurers, prompting the Nepal Insurance Authority (NIA) to mandate fast-track claim settlement procedures. The total insured losses from this single event are now being compared to, and in some reports even projected to exceed, the NPR 16 billion in payouts recorded after the devastating 2015 Gorkha earthquake.

The Scale of the Insured Damage: A Breakdown of Preliminary Claims

The initial assessment of claims, particularly those reported in the immediate aftermath of the protests, revealed an unprecedented scale of damage across various insurance classes. While early reports indicated claims around NPR 20.7 billion as of mid-September, later figures released by the Nepal Insurance Authority (NIA) showed the total preliminary claim amount had risen to NPR 23.22 billion by Ashoj 23 (October 9), encompassing 3,099 total applications filed with 14 non-life and four micro-insurance companies.

This historic level of claims is primarily driven by damages sustained by commercial and industrial properties, which are typically covered under the mandatory “riot, strike, malicious damage, sabotage, and terrorism (RSMDST)” clause within property insurance policies.

Property Insurance Dominates: The single largest component of the insured loss falls under property insurance, which alone accounts for a monumental NPR 19.06 billion across 653 claims. Major losses include the destruction of parts of the five-star Hilton Hotel, which was insured by The Oriental Insurance Company, as well as significant damage to large retail chains like Bhatbhateni Supermarket and various auto showrooms.

Motor Insurance and Other Categories: Motor insurance claims represent the highest volume of applications, with 2,206 claims amounting to NPR 3.41 billion. Additionally, NPR 380 million was claimed under engineering and contract risks, alongside smaller claims for transport and other miscellaneous categories.

Regional Concentration: The majority of the insured losses are concentrated in the Bagmati Province, reflecting the high-value commercial properties and vehicle fleets damaged in the Kathmandu Valley and surrounding areas. This regional concentration presents a logistical challenge for both insurers and the regulatory body overseeing the claim process.

The total volume of claims is anticipated to increase further as damage assessors complete their evaluations and more policyholders submit their documentation, potentially pushing the final claim amount well above the NPR 30 billion mark as some industry experts have projected.

Leading Insurers and Early Payout Status

Despite the overwhelming volume of claims, the insurance sector, under strict directives from the NIA, has initiated the claim settlement process to help affected businesses and individuals recover. However, the total amount disbursed so far remains a small fraction of the total claims filed. As of the October 9 data, only NPR 1.58 billion had been paid out, a figure that includes both settled claims and advance payments.

The provisional data indicates a fierce competition for the highest claim volume among the country’s top non-life insurers:

Siddhartha Premier Insurance and The Oriental Insurance Company have recorded the highest preliminary claims. While early reports sometimes showed Oriental with the lead, recent updates suggest Siddhartha Premier’s total claims have reached approximately NPR 5.45 billion to NPR 5.8 billion, closely followed by Oriental Insurance, which has logged over NPR 5.2 billion in losses. These figures are provisional and vary slightly depending on the reporting date and methodology of the Nepal Insurance Authority.

Other Major Liabilities: IGI Prudential Insurance has reported claims totaling over NPR 2.7 billion, while Shikhar Insurance and Sagarmatha Lumbini Insurance also faced significant liabilities exceeding NPR 1.5 billion each.

The pace of payment remains a critical issue. The NIA has been actively pushing for accelerated claim settlements by allowing simplified documentation procedures and urging companies to issue advance payments, especially for smaller claims, to inject much-needed liquidity into the damaged businesses and support immediate reconstruction efforts. Companies like IGI Prudential have publicly announced the start of claim payments, including the disbursement of over NPR 30 crore (Rs 300 million) in the initial phase, demonstrating compliance with the regulator’s push for a faster response.

Regulatory Response and Industry Implications

The massive insurance liability has put significant focus on the industry’s ability to absorb such a large, single-incident shock.

The Role of Reinsurance: As the damages fall under the “riot and terrorism” risk category, which is generally not reinsured internationally, a heavy burden falls on domestic reinsurers, primarily Nepal Reinsurance Company (NepalRe). Insurers typically retain only 35 percent of the risk, ceding the remaining 65 percent to NepalRe. While NepalRe has retrocession arrangements with international firms like Hannover Re, the financial pressure on the domestic reinsurance sector and individual non-life insurers remains intense, leading to credit rating agencies placing several companies on a “Watch with Negative Implications.”

Facilitating Claims: Recognizing the extraordinary circumstances, the NIA has been proactive. They have instructed insurers to deploy a large number of surveyors—with over 1,800 deployed nationwide in the early stages—and to adopt a fast-track payout procedure. This streamlined process aims to circumvent typical delays, especially those caused by the inability of damaged police and ward offices to issue the necessary official reports for claims. The Authority has also explicitly directed life insurance companies to facilitate claims swiftly and has allowed insurers to use their Corporate Social Responsibility (CSR) Fund for government-led reconstruction efforts, further demonstrating a commitment to supporting the recovery of the affected population.

The unfolding insurance claims from the Gen-Z movement underscore the volatility of socio-political risk in the region and represent a pivotal moment for Nepal’s insurance sector, demanding an efficient, transparent, and prompt response to safeguard policyholder confidence and contribute to national economic recovery.

For More: Insurance Claims of Gen-Z Movement Damage