Kathmandu. In Nepal, whether it is the movements of the Genji generation or the big uprisings for political change, the vandalism of private property and arson on the streets seem to be commonplace. But, do you know that in the event of such a loss, the private sector and businessmen of Nepal can easily get insurance claims. In neighbouring Bangladesh, the same issue is now the cause of a major legal and policy crisis.
Crisis in Bangladesh People’s Uprising or Riots{
The Insurance Regulatory Authority of Bangladesh and the General Insurance Corporation, the country’s only reinsurance company, are at war over technical terms. Billions worth of property were destroyed during the uprising in July and August 2024.
Insurance covers the risks under international insurance laws. Bangladesh’s insurance companies have refused to pay compensation, calling it a “popular coup”. They argue that the insurance policy covers riots but does not cover nationwide uprisings or overthrow movements. As a result, the private industrialists there have been hit hard.
Perspective of Nepal Bullying and Terrorism Insurance Cover
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Nepal’s situation is different from that of Bangladesh. 2060 in Nepal. Since 1961, insurance has been made mandatory for riots, strikes and terrorism.
Why is there compensation TAG_OPEN_strong_37 in Nepal?
{{TAG_OPEN_span_32}Mandatory Coverage TAG_CLOSE_span_32: The Insurance Authority of Nepal (NIA) has made the risk of riots and terrorism optional but mandatory along with fire insurance or motor insurance.
Bridge System In Nepal, there is a separate basket or bridge to pay for the damage caused by mob riots and terrorism. All insurance companies contribute to it.
Clear definition: Vandalism in the name of a political movement or Genji rebellion in Nepal is covered under malicious damage or mob rioting. As a result, there is no room to stop the claim by making technical excuses.
Relief to the Genji Movement and the Private Sector
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In Nepal, the movement of youths mobilized through social media in recent times has increased the risk of physical damage on the roads. From small tea shops to big shopping malls and bank ATMs, many have been targeted by such revolts.
If the insurance claim had been rejected as a people’s revolt in Nepal as in Bangladesh, the private sector would have gone bankrupt today. However, Nepal’s insurance policy has provided financial protection to the private sector by keeping such incidents under the category of terrorism and mob rioting.
The complexity of the legal system in Bangladesh shows how powerful the words used in insurance policies can be. The terrorism insurance model adopted by Nepal decades ago has today proved to be a protective shield for the private sector.
In Bangladesh, regulators have mandated mass protests to be brought into insurance coverage, but the private sector is in a dilemma as companies seek legal loopholes. In the context of Nepal, insurance has become a reliable basis for protecting private property, even in the midst of youth revolt or political instability. This has allowed small entrepreneurs to transfer risk to large investors.
According to the latest data of the Nepal Insurance Authority, insurance companies have so far received insurance claims worth Rs 23.5 billion due to riots and vandalism during the Genji agitation. However, the physical damage could still be substantial. Because some physical assets may not be covered by insurance.
