In Nepal, helicopter rescues in high-altitude mountain regions are a vital service. In these areas, where oxygen levels are thin and weather can change suddenly, the ability to transport distressed climbers to Kathmandu within hours has saved countless lives.
Exploiting this urgency, a sophisticated insurance fraud network operates covertly within this legitimate system. In 2018, the government established an investigation committee, which released a 700-page report and announced reforms. However, last year, the Central Investigation Bureau (CIB) of Nepal Police reopened the files and discovered that the fraudulent activities had not only continued but had increased.
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Tourists on their journey to conquer Everest. Photo: The Kathmandu Post
How does this scam operate?
The mechanism of the fake rescue scam is quite straightforward: stage a medical emergency, call a helicopter, admit the tourist to a hospital, and process the insurance claim. The trick lies in its subtlety: a foreign insurance company finds it difficult to verify events occurring at an altitude of 3,000 meters in a remote Himalayan valley.
The CIB's investigation identified two primary methods for fabricating an "emergency situation".
The first scenario involves tourists who do not wish to trek back. Guides offer an alternative: pretend to be sick, and a helicopter will arrive. The guide then handles the rest.
The second method is more concerning. At altitudes above 3,000 meters, mild symptoms of altitude sickness are common. Blood oxygen saturation can decrease, limbs may tingle, and headaches can appear.
In most cases, rest, adequate hydration, or a slow descent are sufficient. However, according to the CIB's investigation, guides and hotel staff were trained to instill fear in climbers.
They tell climbers that there is a risk of death, and only an emergency rescue offers a chance of survival. Guides are even accused of mixing baking powder into food to exacerbate the tourists' condition.
As soon as a "rescue" is ordered, the financial arrangement begins. A helicopter carries multiple passengers, but separate invoices for the full price are sent to each passenger's insurance company, as if each had a private flight.
A chartered flight worth 4,000 USD transforms into a 12,000 USD claim. Passenger manifests and falsified bills of lading are fabricated.
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The investigation revealed a series of frauds linked from guides to helicopter rescue services and even hospital staff. Photo: The Kathmandu Post
At the hospital, medical staff involved in the fraud prepare discharge summaries using the electronic signatures of senior doctors who were not involved in the case and without their consent.
Fake admission records with severe symptoms are created for tourists, while the tourists are actually laughing and drinking beer in the hospital corridor.
One hospital employee even used their own X-rays, taken about one year prior at a different hospital, as medical records for climbers, the CIB alleges.
The commission structure governing this network was detailed during police interrogations. Hospitals pay 20-25% of the insurance payout to trekking companies and an additional 20-25% to helicopter rescue units in exchange for patient referrals.
Mountain guides and their tour companies benefit from these inflated bills. In some cases, tourists themselves are offered a cash commission to participate in the scheme.
Astonishing figures
From 2022 to 2025, investigators identified 4,782 foreign patients treated at the implicated hospitals. Among these, 171 cases were confirmed as fake rescues. During that period, two involved hospitals received approximately 18 million USD in payments. Three rescue service companies collected around 30 million USD from rescue flights.
The CIB provided an example: 4 tourists were rescued on the same helicopter flight on the same day. However, the insurance records were separated into 4 distinct flights, each with a private aircraft, totaling 31,000 USD in rescue costs, plus a separate hospital bill of 12,000 USD.
During interrogation, a doctor from Shreedhi Hospital stated that for just one client, his hospital paid about 10,6 million rupees in commission to helicopter rescue services and an additional 1,5 million rupees to mountain tour operators.
"My hospital shares commissions to boost business," he said in a recorded statement.
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Era International Hospital, one of three hospitals accused of involvement in the fraud cases. Photo: Era Hospital
Why is verifying insurance claims so difficult?
Most travel insurance policies require contacting the insurance company before initiating a rescue. In the Himalayas, in high-altitude areas where communication is challenging and many regions lack good mobile phone signal, this rarely happens.
By the time the insurance company is informed, the evacuation is complete, the patient has been transported to a hospital hundreds of kilometers away in the capital, and a local rescue company or tour operator has already begun preparing paperwork.
The rescue company's goal is to maximize the number of passengers per flight while billing each insurance company individually.
The tour company's goal is to refer clients to rescue operators who pay the highest commissions.
The hospital's goal is to admit patients, perform unnecessary procedures, and maintain relationships with tour operators who bring them patients. At any point in this chain, no party's interests align with those of the insurance company paying the claim.
In 2018, following initial investigative reports in The Kathmandu Post, a government investigation committee spent months probing the issue. The 700-page report, submitted to the Minister of Tourism, documented widespread fraud. Many proposed measures proved ineffective.
The second investigation commenced in 9/2025, when a group of citizens filed a new complaint with the CIB. This prompted the agency to reopen cases after eight years.
On 12/3/2026, the CIB charged 32 individuals from three helicopter rescue companies, two hospitals, and 10 tour companies with offenses against the state and organized crime.
This time, authorities intend to halt this scheme before it causes severe damage to Nepal's tourism industry.
Hai Thu (According to The Kathmandu Post)
