Insurance Companies Begin Advance Claim Payments Following Gen Z Protests

Kathmandu – In a major shift for Nepal’s insurance industry, several non-life insurance companies have started disbursing advance claim payments to policyholders affected by the recent Gen Z protests, marking a new era of prompt compensation and responsible insurance practices.

Traditionally, insurance companies released claim payments only after completing the full verification and assessment process. However, in light of the extensive damages caused during the protests, companies have begun providing up to 50 percent of the estimated claim amount in advance, allowing affected businesses to begin repairs and resume operations swiftly.

Among the hardest hit, Bhatbhateni Supermarket has received approximately Rs 1 billion in advance claim settlements from multiple insurers, including Shikhar Insurance, IGI Prudential, and Siddhartha Premier Insurance. The funds have enabled the company to initiate reconstruction and reopen damaged branches across the country.

According to company officials, Shikhar Insurance has already paid 25 percent of the preliminary assessed amount and is preparing to release another 25 percent, while IGI Prudential and Siddhartha Premier Insurance have also made significant disbursements.

Other insured institutions, such as Hotel Sarowar in Pokhara (insured by Neco Insurance) and Ullens School, which has major investment from Arzu Rana Deuba, have also received partial payments. Similarly, CG Group, led by industrialist Binod Chaudhary, has received advance compensation from Siddhartha Premier Insurance and has already begun reconstruction of damaged properties.

Data shows that Siddhartha Premier Insurance has released Rs 760 million, Shikhar Insurance around Rs 400 million, and IGI Prudential approximately Rs 303 million in advance claim settlements. Likewise, Sagarmatha Lumbini Insurance (SALICO) has paid Rs 45 million, Neco Insurance around Rs 120 million, and Oriental Insurance Company, the Nepal branch of an Indian insurer, has disbursed Rs 550,000 as part of its advance settlement process.

According to the Insurance Board, as of Ashoj 23, total claim payments—including advance and final settlements—have reached Rs 1.58 billion, with advance payments alone exceeding Rs 2 billion. All 14 non-life insurance companies operating in Nepal have begun providing partial payments to their insured clients affected by the unrest.

The Nepal Insurers’ Association has confirmed that companies are working closely with the Insurance Board to expedite the settlement process. The regulator has prioritized advance claim payments to ensure immediate relief for those impacted.

According to insurance expert Dr. Rabindra Ghimire, the initiative reflects growing maturity among Nepali insurers. “The system of advance payments demonstrates the industry’s ability to deliver timely support and reinforce public trust,” he noted.

Globally, insurers often provide up to 50 percent of estimated losses as advance compensation, later adjusting the remaining balance after a full assessment. This international practice has now been effectively adopted by Nepali insurers, signifying progress toward global standards.

Despite the challenges, insurance companies have continued processing claims during the Dashain holidays, ensuring that most affected clients receive 50 percent advance settlements before Tihar.