Gen Z Movement Causes Property Damage Worth Billions; Insurers Brace for Over Rs 50 Billion in Claims

Kathmandu — The Gen Z movement, which turned violent after Bhadra 23, has left widespread devastation across the country, with property damage estimated in the billions of rupees. Insurance companies fear that claims could surpass Rs 50 billion, posing one of the most severe challenges the sector has faced in recent years.

Deep Prakash Pandey, Chief Executive Officer of Shikhar Insurance, said initial estimates of the losses remain uncertain, particularly in private property, as the situation is still highly unstable. “We are deploying surveyors to the affected areas where possible. The environment is very difficult at the moment, but we will begin processing claims as soon as conditions improve,” Pandey noted. Surendra Poudel, CEO of Nepal Reinsurance Company, echoed these concerns, stating that discussions are underway with insurers to address reinsurance obligations and that further coordination with companies and regulators will take place once the environment becomes safer.

The heaviest destruction occurred on Tuesday, with further damage reported on Wednesday despite security being reinforced by the Nepal Army. Hotels, supermarkets, telecommunications providers, educational institutions and business complexes were among the main targets. According to Panu Datta Poudel, Chief Operating Officer of Bhatbhateni Supermarket, its branches in Tangal, Maharajgunj, Chitwan, Chuchepati and Koteshwor have been “completely damaged,” though details of the financial loss are still being compiled. Major damage has also been reported at the Hilton Hotel and the Chandragiri and Maulakalika cable car projects owned by FNCCI President Chandra Prasad Dhakal. Residences of prominent business leaders were also attacked, including the homes of former FNCCI President Shekhar Golchha and lawmaker-entrepreneur Binod Chaudhary, whose office in Santugal was set ablaze. Other high-profile properties, such as those of CG Electronics, Ncell, Global College, Ullens School and Central Business Park, have also been vandalized.

The unrest has not spared the banking sector. According to the Nepal Bankers’ Association, branches of Rastriya Banijya Bank in Naya Baneshwor, Himalayan Bank in Battisputli, Standard Chartered Bank in Chitwan and Morang, and Global IME Bank in Thapathali were vandalized, with assessments of losses ongoing in coordination with Nepal Rastra Bank.

The violence has already claimed the lives of more than 30 youths, adding to the gravity of the crisis. Insurers expect the heaviest impact to fall on property and motor insurance categories. In the last fiscal year 2080/81, non-life insurers collected Rs 40.34 billion in premiums and paid Rs 20.71 billion in claims, while in 2081/82 premiums rose to Rs 41.47 billion with Rs 17.9 billion in claim payouts. However, experts warn that the current situation could trigger unprecedented claims, particularly under sabotage and terrorism insurance policies, which cover political violence but are priced at relatively low premiums.

Both insurers and bankers have warned that the economic repercussions of the Gen Z movement could rival some of Nepal’s past major crises, stressing the urgent need for stability and recovery measures to contain further damage.