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Nepal Arrests Six in $19.69M Fake Helicopter-Rescue Insurance Scam

Nepal Arrests Six in $19.69M Fake Helicopter-Rescue Insurance Scam
The stunning Himalayas attract thousands of trekkers and climbers to Nepal every year -- and emergency helicopter rescues are a critical part of the tourism industry (PRAKASH MATHEMA)(PRAKASH MATHEMA/AFP/AFP)

Nepalese police have arrested six people after a Central Investigation Bureau probe uncovered a fraudulent scheme involving fake helicopter rescues and insurance claims totaling about $19.69 million. Investigators found multiple claims for the same rescue, charter flights misrepresented as emergency evacuations, and fabricated medical bills tied to private hospitals. Three companies sought the payouts, and a 2018 inquiry had earlier linked 15 firms to the racket but took no action. Authorities say investigations are ongoing.

Nepalese authorities have arrested six people after a Central Investigation Bureau probe uncovered a sophisticated scheme that used fake helicopter rescues to claim roughly $19.69 million in insurance payouts.

Investigation Findings

The bureau's two-and-a-half-month investigation found a pattern of abuses, including multiple insurance claims filed for the same rescue, chartered flights falsely presented as emergency evacuations, and fabricated medical bills allegedly issued with the involvement of private hospitals.

  • Three companies reportedly sought approximately $19.69 million in payouts, according to a police statement.
  • Investigators uncovered forged and manipulated documents that supported those fraudulent claims.

Official Comment

"This has been a long-standing issue and we have been investigating. Six have been arrested and our investigations will continue," said Shiva Kumar Shrestha, spokesman for the Central Investigation Bureau, in remarks to AFP.

Background

A 2018 government inquiry previously identified 15 companies — including helicopter operators, trekking agencies and hospitals — linked to the lucrative racket, but no action was taken at that time. Authorities later introduced guidelines to curb fake rescues after insurers raised concerns, yet the scams reportedly continued.

Implications

Emergency helicopter evacuations are a critical safety service for trekkers in Nepal's Himalayan regions. This scandal undermines public trust in rescue services, could increase costs for insurers and trekkers, and may prompt tighter regulation of rescue operations, helicopter charters and related medical billing practices.

The Central Investigation Bureau said the probe is ongoing and additional arrests or charges are possible as investigators follow up on forged documents and company records.

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Nepal Arrests Six in $19.69M Fake Helicopter-Rescue Insurance Scam - CRBC News