An investigation has revealed nearly $20 million in insurance fraud in Nepal, involving guides accused of staging or prompting mountain rescues. Reports indicate that some guides even tied food to hikers near Everest to create urgency for rescue. Kathmandu, the capital city, is a popular starting point for adventurous climbers tackling Mount Everest, which sits on the border of Nepal and the Tibet Autonomous Region of China.
According to the Kathmandu Post, after irregularities were exposed in 2018, the government formed a committee that produced a lengthy report recommending reforms. However, last year, the Nepal Police Central Investigation Bureau (CIB) reopened the case and discovered that fraudulent activities had increased.
As detailed in a recent report, investigators highlighted two primary fraudulent methods. In one scenario, guides deceive exhausted climbers, pretending to suffer from altitude sickness, and arrange for helicopter evacuations. In another, guides allegedly instill fear among trekkers by exaggerating the risks of altitude sickness, claiming that immediate action is necessary for survival. There were instances where some guides administered Diamox (acetazolamide), a medication for altitude sickness, in conjunction with forcing excessive fluid intake, causing symptoms that prompted rescue. The investigation even uncovered a case where a guide mixed baking powder into food to induce sickness.
On one occasion, police documented a single helicopter rescue of four people, although the insurance claims were submitted as multiple individual rescues. The extensive fraud scheme detailed by the CIB involved hospitals paying 20% to 25% of the insurance payouts to trekkers and helicopter rescue teams in exchange for referrals.
The Kathmandu Post suggested that trekking guides and related businesses were profiting from inflated charges, with some tourists reportedly being offered money to participate in the fraud. In total, between 2022 and 2025, 4,782 foreign patients were treated at the hospitals implicated in the scheme, with 171 cases confirmed as fraudulent. During that time, Ella International Hospital received over $15.87 million in deposits for these activities, while Shreedi International Hospital garnered more than $1.22 million.
The investigation revealed that the mountain rescue team had conducted 171 fake rescues out of a total of 1,248 charter flights, earning around $10.31 million from insurance companies. Nepal Charter Flights executed 75 fraudulent rescues from 471 flights, claiming approximately $8.2 million. Everest Experience and Assistance faced accusations related to 71 questionable rescues among 601 flights, totaling $11.04 million.
Recently, the CIB indicted 32 individuals for state crimes and organized crime, with nine arrests made and others still unaccounted for. Those indicted included personnel from Mountain Helicopters, Altitude Air, and a rebranded entity known as Basecamp Helicopters, as well as medical staff from several hospitals implicated in the fraud.
