The government has decided to insure state-owned assets for the first time, aiming to reduce financial exposure from disasters and unrest such as the recent GenZ protests that left public buildings and vehicles in ruins. The Cabinet meeting held on Sunday endorsed the plan to make insurance mandatory for government property. The Ministry of Finance confirmed the decision in a statement two days later, saying it would “initiate the process of insuring government infrastructure.”
Until now, the state had borne the full cost of rebuilding whenever earthquakes, floods, fires, or arson damaged public assets. But the scale of destruction during the Sept 8–9 GenZ protests, which targeted iconic institutions including the Supreme Court, Parliament, Prime Minister’s Office, and ministries inside Singha Durbar, highlighted the need for risk-sharing mechanisms.
According to the Nepal Insurance Authority, non-life insurers have already received 2,478 claims amounting to Rs 22.25bn following the protests. While private properties and businesses had coverage, government buildings were not insured, meaning reconstruction would have to be funded entirely from the treasury.
While the exact number of government buildings is not available, observers say it is substantial. In addition to federal-level structures, all seven provincial governments and 753 local governments maintain their own offices across the country. Each ward within the local units also has its own building. Major government agencies are represented in all 77 districts, while the army and police maintain nationwide presence with extensive infrastructure. There are also numerous universities, colleges, and schools under the public sector.
Officials said the new policy would initially focus on insuring government buildings and vehicles, which alone would generate billions of rupees in premiums for the domestic insurance industry. Full-scale coverage of all public assets would take time, they added, but the step marks a major breakthrough for insurers who have long pushed for mandatory government asset coverage. Industry experts say the government's decision could more than double the size of the non-life insurance market.
The Nepal Insurance Authority had earlier advised the government to include asset coverage in this year’s budget. But the proposal was shelved due to fiscal constraints. Finance ministry officials now say the scheme will be implemented beginning the next fiscal year. Government vehicles are insured, but they only have the mandatory third-party insurance cover.
