Bhatbhateni Faces Billions in Losses from Gen Z Protests, IGI Prudential Exposed to Rs 2.5 Billion in Claims

Kathmandu — Bhatbhateni Superstore has suffered damages worth billions of rupees during the Gen Z protests last Tuesday, with initial assessments indicating insurance claims of over Rs 2.5 billion falling under IGI Prudential Insurance alone.

Out of the 28 branches nationwide, 21—including the central office building—were vandalized, looted, or set on fire. According to company official Panu Poudel, 12 branches were looted and destroyed by arson, while nine sustained heavy vandalism. Only seven outlets escaped damage.

IGI Prudential, the country’s largest insurer in terms of policy coverage, has insured 16 of Bhatbhateni’s branches. Other insurers, including Salico and Siddhartha Premier Insurance, are also expected to share a portion of the claims. Losses primarily cover building structures, maintenance, and inventory.

The incident falls under the “riot and terrorism” category in insurance. As per regulatory provisions, 35 percent of the liability will be borne by the respective insurers, while the remaining 65 percent will be covered by Nepal Reinsurance Company. However, industry insiders caution that some insurers may not have secured adequate reinsurance for their 35 percent exposure, which could strain financial stability.

“This is a mixed scenario—some companies may have reinsured their risks, while others may not have,” said the CEO of one of the firms involved. “In certain cases, reinsurance covers extend only up to Rs 100 million.”

The Insurance Authority has faced criticism in recent years from insurers lobbying to remove mandatory riot and terrorism coverage, citing Nepal’s relative political calm. No significant claims had been filed under this provision since 2063, except for the 2081 Tinkune incident, when looting at Bhatbhateni Koteshwor caused a loss of Rs 8 million.

Branches completely destroyed by fire include Koteshwor, Maharajgunj, Boudha, Baluwatar Warehouse, Biratnagar, Dharan, Damak, Pokhara, Chitwan, Hetauda, and Birtamod. Other branches—including Balaju, Bhairahawa, Kalanki, Thimi, Janakpur, Birgunj, Itahari, Butwal, and Dhangadhi—were vandalized and looted but not fully gutted.

Bhatbhateni conducts transactions worth more than Rs 31 billion annually. Last year, its chairman Min Bahadur Gurung donated land valued at over Rs 2 billion to the UML, a move that drew widespread public attention.