Insurance Board Opens Legal Path for Insurance Companies to Support Reconstruction After Gen Z Protest Damages

Kathmandu — The Nepal Insurance Authority (NIA) has allowed insurance companies to financially contribute to the government’s reconstruction and recovery efforts following the damages caused by the recent Gen Z protests.

The Authority made this provision by introducing the second amendment to the “Insurer’s Institutional Governance Directive, 2082”, officially enabling insurers to use their Corporate Social Responsibility (CSR) Fund to support government-led reconstruction activities.

According to the amendment, a new clause has been added to Section 45(2) of the directive — specifically Clause (ṅ) — which allows insurers to contribute funds for:

“Reconstruction, economic recovery, and relief efforts in response to damages caused by natural disasters, civil movements, public protests, or other causes, by depositing the amount in a fund established by the Government of Nepal.”

Previously, no such legal provision existed for insurers to make financial contributions of this nature.

Under Section 45 of the directive, insurance companies are required to allocate at least 1% of their annual net profit to establish a Corporate Social Responsibility (CSR) Fund. The collected amount can be utilized through annual plans and programs for various social projects — including education, health, disaster management, insurance literacy, consumer protection, and economic empowerment of marginalized groups.

The amendment also allows the CSR fund to be used for direct grants, including:

• Covering the costs of education and health insurance for underprivileged and marginalized groups,

• Supporting poverty reduction initiatives, and

• Contributing to insurance coverage for disaster risk reduction under the government’s national strategy.

Additionally, insurance companies can now use this fund to establish and operate child care centers for the children of their employees.

The government had earlier appealed to Nepalis at home and abroad to contribute financially toward rebuilding the infrastructures and communities affected by the Gen Z demonstrations held on Bhadra 23 and 24.

According to the Authority, this amendment was introduced to make it easier for insurance companies to participate in national reconstruction efforts and to fulfill their institutional and social responsibilities.

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