Kathmandu: Hilton Kathmandu has filed an insurance claim worth Rs 4.39 billion with Oriental Insurance Company following extensive damage caused during the Gen Z protests held on September 9 and 10 last year.
The hotel sustained significant destruction, including vandalism and fire damage, during the demonstrations. After months of assessment, the hotel management has now formally submitted its compensation claim.
According to sources, the damage assessment was completed with the support of Portuguese surveyors, and the insurance claim was officially filed on May 18. The process reportedly took longer than expected because of the detailed evaluation required to determine the full extent of the losses.
Debris from the damaged hotel premises has already been cleared, and preparations are underway to begin reconstruction work. The hotel is also under pressure to resume operations as quickly as possible due to the growing burden of bank loans and rising interest costs.
Earlier, the Nepal Insurance Authority had taken action against several companies and executives over alleged irregularities related to the hotel’s reinsurance arrangements.
The regulator penalized Himalayan Reinsurance, Oriental Insurance Company, and Alliant Insurance Brokers, along with the CEO of Nepal Reinsurance Company, for actions deemed to be in violation of insurance regulations.
Under the penalties imposed, the CEO of Nepal Reinsurance Company was punished under the Insurance Act 2022, while both Himalayan Reinsurance and Oriental Insurance Company were fined Rs 200,000 each. The operating license of Alliant Insurance Brokers was also suspended for three months.
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