No Insurance on Government Buildings and Vehicles; Private Assets Covered, Offering Financial Relief
Recent unrest destroyed key government and private assets. While private properties are insured, lack of coverage on government buildings leaves the state exposed.
The recent two-day unrest led by the Gen-Z movement has caused widespread destruction across Nepal, with major government and private properties set ablaze or vandalized. Despite the resignation of Home Minister Ramesh Lekhak and Prime Minister KP Sharma Oli, rioters continued attacks, targeting both public and private infrastructure.
The damage includes the burning of Singha Durbar, destruction of the Parliament building at Bhrikuti Mandap, and severe damage to the President’s Office at Sheetal Niwas, the Prime Minister’s residence in Baluwatar, and ministerial quarters in Lalitpur. Even the judiciary and local municipality offices were not spared.
The violence also extended to private assets. Luxury hotels such as the Hilton and Hyatt, auto showrooms in Thapathali, and telecom operator Ncell’s headquarters were targeted, alongside widespread damage to Bhatbhateni Supermarket outlets nationwide.
According to Chunky Chhetri, CEO of Sagarmatha Lumbini Insurance and former president of the Non-Life Insurance Association, the financial burden of compensation claims will heavily affect insurers and reinsurers. He explained that property insurance policies cover damages from riots and vandalism, while motor insurance will handle vehicle losses. On average, insurers bear 35% of property losses, with the rest transferred to reinsurers.
Chhetri further noted that while political leaders’ residences and private businesses had insurance, most government buildings and vehicles remain uninsured, exposing the state to significant financial losses. Despite repeated calls after the 2015 earthquake to insure public infrastructure, the government neglected to act.
Private businesses, often operating with bank loans, had insurance coverage as required by lenders. Policies covering riot, strike, terrorism, and vandalism have been mandatory since last fiscal year, pushing up premiums but ensuring protection. For instance, Bhatbhateni reportedly pays NPR 40–50 million annually in insurance premiums, with claims now expected to reach billions of rupees.
Insurance leaders have urged the government to insure its own assets through state-owned or partner insurers such as Rastriya Beema Company, Neco Insurance, NLG Insurance, and United Prudential Insurance. Doing so would not only safeguard public infrastructure but also promote wider adoption of insurance practices.