Nepal Helicopter Rescue Scam: Six Arrested Over Fake Treks Evacuations and $19.69M Insurance Fraud

Nepal’s high-value trekking tourism sector is facing a credibility shock after police uncovered an alleged helicopter rescue fraud network that investigators say staged medical evacuations of foreign trekkers and filed millions of dollars in questionable insurance claims.

According to reporting by Nikkei Asia, Nepal Police arrested six operators linked to three helicopter rescue firms — Mountain Rescue Service, Nepal Charter Service and Everest Experience — over what authorities describe as a coordinated scheme to fake or exaggerate medical emergencies. Investigators say the practice was used to justify helicopter evacuations and inflate hospital billing, with suspected insurance claims reaching about $19.69 million.

Police estimates cited in the report indicate at least 317 rescues between 2022 and 2025 are considered suspicious. The case centers on allegations that flights were billed even when they did not occur, while paperwork and cost records were manipulated to support reimbursement demands from international travel insurers.

Shiva Kumar Shrestha of Nepal Police’s Central Investigation Bureau told Nikkei Asia that the inquiry is still ongoing and may lead to charges such as document forgery, criminal deception and offenses against national interest. He said investigators are also examining possible organized profiteering and money-laundering links tied to the operation.

As described by investigators, the method allegedly involved falsified passenger and cargo manifests, altered invoices and insurance submissions for non-existent or medically unnecessary flights. The current four-month probe began in September and also draws on a 2018 government investigation that previously identified insurance abuse patterns in the trekking rescue segment but did not result in arrests at that time.

The arrests come during a broader anti-corruption drive launched after last September’s political upheaval and the formation of an interim government. As previously reported, Nepal’s anti-graft authority has filed cases against dozens of officials and a Chinese construction firm in a separate airport project investigation.

Tourism operators cited in the report warn that the fallout extends beyond financial loss. Nepal relies heavily on foreign trekkers visiting Everest, Annapurna and Langtang regions, where genuine helicopter rescues are often lifesaving. Industry voices told the publication that misuse of the rescue and insurance system risks undermining international trust, even though helicopter services themselves remain critical for real emergencies.

Insurance providers in Europe, North America and Australia — including Allianz Partners, AXA Assistance, World Nomads and Travel Guard — were among those named as recipients of the disputed claims. The report notes that insurers have already tightened evacuation approval rules and raised premiums in recent years due to rising rescue costs.

With criminal and financial investigations expanding, the case is likely to shape how Nepal regulates helicopter rescue, trekking operations and insurance-linked evacuations going forward.