Nepal insurers settle only a third of protest damage claims after nine months

Nine months after the Gen Z protests of September 2025, insurance companies in Nepal have settled only about one-third of the Rs23.53 billion in property damage claims. Insurers received 3,664 claims for damage to businesses, vehicles, and infrastructure, but have so far paid out only Rs7.62 billion.

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I do not believe insurance companies deliberately delayed payments. Some claims have been held up because the required documents were not submitted. It is a procedural issue rather than an intentional delay.

While the Nepal Insurance Authority and insurers deem the settlement pace satisfactory, business leaders express concern. Kamlesh Kumar Agrawal, president of the Nepal Chamber of Commerce, noted that simpler claims were resolved quickly, but complex cases face delays due to incomplete documentation. He believes these are procedural issues, not intentional delays.

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Many companies have started rebuilding damaged properties with their own resources even though they have not yet received full insurance compensation.

Anjan Shrestha, president of the Federation of Nepalese Chambers of Commerce and Industry, stated that only about a quarter of claims are fully settled. Many businesses are rebuilding using their own funds while awaiting insurance payouts. Insurers, however, maintain they have processed all claims with completed documentation and assessments, pointing to pending survey reports for large claims as the reason for delays.

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Survey reports for large claims are still pending. Almost all claimants have received advance payments. Full settlement of major claims has been delayed because the assessment process has not yet been completed.

Chanki Chhetri, former president of the Nepal Insurers' Association, suggested that the actual payable amount might be closer to Rs14 billion to Rs15 billion, making the current payouts reasonable. He explained that while advance payments have been made, full settlement for major claims requires detailed assessments by independent surveyors. A senior Insurance Authority official, speaking anonymously, confirmed that survey reports for significant claims, such as those for Hilton Kathmandu and Bhatbhateni Supermarket, are still pending, and some disputes are further delaying payments.

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Although claims worth Rs23.53 billion were submitted, the actual payable amount is likely to be around Rs14 billion to Rs15 billion. Against that figure, the payments made so far are reasonable.