Shikhar Insurance Settles 218 Claims Worth NPR 420 Million in 17 Days for Gen-Z Movement Victims

14th October 2025, Kathmandu

The recent Gen-Z Movement in Nepal, which resulted in widespread property damage, has presented the country’s insurance sector with an unprecedented challenge, triggering the largest single-incident claims in its history.

Shikhar Insurance Claim Settlement

Amidst this turmoil, Shikhar Insurance Company has emerged as a beacon of operational efficiency and customer commitment, demonstrating a remarkably swift response in compensating affected policyholders. In a testament to its proactive approach and solid financial standing, the company has announced that it has already paid out over NPR 420 million (NPR 420.1 million) in insurance claims within a mere 17 working days. This rapid action is a critical step not just for the claimants, but for reinforcing public faith in the resilience of Nepal’s non-life insurance market.

Addressing a Historical Challenge with Unmatched Speed

The total nationwide claims filed following the Gen-Z protests have reached a staggering NPR 23.22 billion, a figure that surpasses the claims from the devastating 2015 Gorkha earthquake. Shikhar Insurance itself registered a total of 433 insurance policies with a claim value of NPR 2.41 billion. Navigating a crisis of this magnitude, compounded by logistical hurdles such as intermittent curfews and the interruption of national holidays like Dashain and Tihar, requires exceptional dedication. The company’s success in settling 218 insurance claims in such a short period underscores its robust internal processes and its commitment to minimizing the financial disruption for its clients.

The Chief Executive Officer (CEO) of Shikhar Insurance, Deep Prakash Pandey, reinforced the company’s customer-centric philosophy, stating emphatically, “We never delay claim payments; we actively reach out to ensure our clients are compensated quickly.” This sentiment translates directly into action, with the company proactively implementing an advance payment policy.

The Advance Payment Mechanism: A Lifeline for Businesses

In a crucial measure to inject immediate capital back into struggling businesses and aid in rapid reconstruction, Shikhar Insurance has been releasing advance payments. These payments, which can cover up to 50 percent of the insured amount, are based on preliminary assessments from field surveyors. This is a practical and essential step in a post-calamity environment where business interruption can lead to significant secondary losses.

Of the total amount disbursed so far, NPR 192.7 million represents the full settlement of 42 cases, predominantly belonging to the motor insurance category. Furthermore, an additional NPR 401.8 million has been distributed as advance payments across 176 pending claims. This combination of full settlement for smaller, simpler claims and significant advance payments for larger, more complex ones demonstrates a finely tuned strategy for liquidity management and expedited relief. A major example of this commitment is the high-profile case of Bhatbhateni Supermarket, one of the businesses that suffered the heaviest losses. Shikhar Insurance has already paid 25 percent of the claim amount to the retail giant and is in the final stages of releasing another 25 percent, showcasing a firm resolve to support key national enterprises.

Financial Stability and Strategic Focus

In light of the massive financial obligations, questions around the liquidity of insurance companies naturally arise. However, CEO Pandey offered a confident reassurance, confirming that Shikhar Insurance faces no liquidity issues. He strategically contextualized the total expected payout, noting that even after the complete settlement of all Gen-Z-related claims, “the total financial impact will be around NPR 220–230 million, which is roughly equivalent to our six-month earnings.” This statement highlights the company’s strong capital reserves and effective reinsurance arrangements, ensuring that the current crisis will not derail its long-term financial health. The ability to absorb and manage such a significant payout reinforces the company’s reputation as a reliable and financially secure partner in the non-life insurance sector.

Dissecting the Claim Landscape: Property Takes the Biggest Hit

The nature of the damages filed with Shikhar Insurance clearly reflects the destructive pattern of the protests, which largely targeted commercial and private properties. The largest portion of the claims, both in volume and value, came from the property insurance category, accounting for a colossal NPR 1.77 billion. This includes commercial buildings, offices, and retail outlets that bore the brunt of the vandalism and arson.

Following property damage, motor-related losses constituted the next major segment. This included claims for:

• Private Vehicles: NPR 261.9 million
• Commercial Vehicles: NPR 209.6 million
• Motorcycles: NPR 6.3 million

Additionally, damages were filed under engineering insurance (NPR 132.3 million) and miscellaneous categories (NPR 21 million). The geographic distribution of the claims also offers a telling insight into the areas most affected by the unrest. Unsurprisingly, Bagmati Province accounted for the overwhelming majority of cases with 348 claims, given its density of commercial activity and its status as the center of the capital. Other provinces with notable claim numbers included Madhesh (24 cases), Sudurpashchim (26 cases), and Lumbini (14 cases).

Building Trust and Driving Market Growth

Shikhar Insurance’s exemplary performance in claims settlement sets a positive precedent for the entire Nepali non-life insurance industry. By prioritizing quick disbursement and maintaining clear communication, the company is directly contributing to a renewed sense of public confidence. The target of completing 40 percent of total claim settlements before Tihar is an ambitious goal that, upon achievement, will significantly strengthen its market position and serve as a crucial confidence-booster for policyholders nationwide.

In an environment where natural disasters and civil unrest pose recurrent threats, the efficiency of the insurance sector is paramount to economic stability. The proactive and swift response by Shikhar Insurance is a vital demonstration of the value of insurance coverage, which will undoubtedly encourage greater policy penetration and ultimately support the long-term growth and stability of Nepal’s economy.

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