Nepal Arrests Six in Alleged $20 Million Mountain Rescue Insurance Fraud
Authorities in Nepal have arrested six travel and mountain rescue executives in connection with an alleged scheme to defraud international insurance companies. The arrests, made by Nepal's Central Investigation Bureau last week, pertain to accusations of conducting fake rescues on the Himalayan nation's high mountains. All six individuals are Nepali nationals.
Allegations and Scope of Fraud
"The executives, representing three different travel and mountain rescue operators, are accused of submitting fraudulent claims totaling nearly $20 million between 2022 and 2025."
The money was reportedly received in their accounts. Specific allegations include:
- One company claimed 1,248 rescues, with 171 identified as fake, leading to over $10 million in unjustified payouts.
- Another company allegedly fabricated 75 out of 471 claimed rescues, fraudulently claiming $8 million.
- A third company is accused of 71 fake claims, resulting in payouts exceeding $1 million.
Modus Operandi
The bureau indicated that fake documents were allegedly sent to insurance companies. These documents included passenger and cargo manifests for helicopter rescue flights, along with fabricated medical invoices and hospital reports.
Context of Mountain Rescues in Nepal
Nepal attracts thousands of climbers and tens of thousands of trekkers to its Himalayan mountains annually. Each year, several climbers die, and hundreds require rescue due to extreme exhaustion, altitude sickness, or other medical issues.
Given the limited roads and medical facilities in the mountains, expensive helicopter flights are frequently chartered to transport patients to hospitals in Kathmandu, the capital. High-altitude climbers are typically required to show proof of insurance covering helicopter rescue before obtaining climbing permits.
Investigation Status
Bureau spokesperson Shiva Kumar Shrestha stated that authorities are continuing their investigation into these matters.