A significant investigation has revealed a large-scale insurance scam involving air rescues in Nepal, with 33 individuals charged. The case, which implicates a range of stakeholders in the tourism sector, originated from claims totalling approximately Rs 130 crore. The Nepal Police’s Central Investigation Bureau (CIB) initiated a probe on January 25, 2025, following reports of fraudulent activities targeting foreign tourists.

Of the 33 individuals accused, ten have been taken into custody, while others remain at large. Allegations indicate that these individuals defrauded insurance companies by fabricating documents associated with medical treatments and rescue operations. This misconduct has raised concerns over the integrity of the tourism and healthcare sectors in Nepal.

The investigation is the result of a detailed report submitted to the government attorney’s office on March 15, 2025. Charges have been recommended against the accused, encompassing various offences such as national interest crimes and organised crime.

Nature of the Fraudulent Activities

The fraudulent activities reportedly date back to 2022, with numerous insurance claims being filed using counterfeit documentation. The extent of the fraudulent claims includes approximately NPR 94.84 crore, USD 2.99 million, and EUR 14,500. This has highlighted significant issues within the documentation processes used in tourist rescues.

Particular focus has been given to three companies involved in the alleged fraud: Mountain Rescue Service, Nepal Charter Service, and Everest Experience and Assistance. Investigators revealed that Mountain Rescue Service alone conducted 1,248 rescues during this period, with 171 being identified as fraudulent, which led to claims around Rs 149.49 crore. Meanwhile, similar suspicious activities were noted in operations by the other two companies.

It has come to light that tourists were subjected to unnecessary medical admissions post-rescue. Reports detail instances where tourists were taken for shopping during the day but admitted to hospitals in the evening, thereby inflating the claims from insurance providers. Authorities discovered that passports were often withheld until the insurance payments were confirmed.

Impact on Victims and Further Investigations

Victims of this scam have alleged coercion, claiming they were forced into signing documents asserting they were not pressured into their rescues and were satisfied with the services provided. Investigators found that hospitals reportedly admitted patients solely to increase insurance claims, allowing them to remain in hotels while still labelled as hospitalised.

Additional findings from the investigation revealed that fabricated medical reports and inflated bills were employed to extract funds from insurance companies, which were subsequently distributed among the involved parties, including hospital operators and trekking agencies.

The investigation was spurred by recommendations from a high-level committee established on October 19, 2025, and has been assisted by complaints from victims and whistle-blowers. Official recommendations for prosecution have been made based on collaborative efforts of the authorities, indicating a substantial level of collusion among various sectors.

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