Vehicle Insurance

Third Party Insurance

  • Third party vehicle insurance is compulsory at the time of vehicle bluebook renewals, as per the law of Nepal Government.
  • Covers damage to third party vehicle or person by the insured vehicle.

Comprehensive Insurance

  • Covers damage to third party vehicle or person by the insured vehicle due to accident.
  • Covers damage to drivers and passengers in the insured vehicle due to accident.
  • Covers of Theft of Insured vehicle.
  • Damage due to riots.

Motorcycle Vehicle Insurance is insurance for your two-wheeler (bike or scooter) that provides financial protection against physical damage or bodily injury resulting from accidents and or against liability that could arise from incidents in a vehicle, theft of the vehicle, and against damage to vehicle from other events such as keying, weather or natural disasters, collision with stationery objects. The cover may however defer depending on the type of insurance policy.

Comprehensive Insurance, as the name implies, provides comprehensive coverage provides:

  • Damage of own and third party vehicle
  • Damage of own vehicle due to keying, riots, weather or natural disasters
  • Bodily injury of driver & passenger (total two person in case of motorcycle) and third party bodily injury
  • Damage to own vehicle sustained by colliding with stationery objects
  • Liability caused to stationery objects due to collision with stationery objects of third party

Coverage of Vehicle up to SI Amount/Vehicle Price under following risks:

  • Fire, Earthquake, thunderstorm
  • Land slide, flood
  • Strom, hailstorm, fog, Ice -frost
  • Spare-parts explosion or fire,
  • Accidental losses
  • Risk caused by Road, Rail way and related paths and transits
  • Additional risk, expanded and/caused by wear& tear and depreciation
  • Loss due to electronic short-circuit and related risks
  • RISDT- strike, riot and terrorism related risk

Coverage against vehicle risk: Amount equal to the Insurance Policy or the Asset Value whichever is the lowest.

Towing Expenses:

  • Rs. 1,000 if less than 5 kilometers
  • Rs. 2,000 if more than 50 kilometers

Depreciation to be written off during Claim Process

For all types of rubber, plastic or nylon parts, lights, battery, tyres & tubes 50%
For parts made from fiber glass 30%
For glass items 0%

Depreciation to be written off on Spare Parts based on Vehicle for Age

Less than 6 months 0%
6 months to 1 year 5%
1 year to 2 years 10%
2 years to 3 years 15%
3 years to 4 years 25%
4 years to 5 years 35%
5 years to 10 years 40%
More than 10 years 50%

Sum Assured of Complete Vehicle

  • The declared sum assured by the insurer will be official value of the vehicle during the entire period of insurance period.
  • In case when the price list for the vehicle is available from the manufacturer or distributor:
    • Depreciation applicable on the vehicle will be based on the price provided for the specific brand and model of vehicle by the manufacturer or authorized distributor in Nepal, as follows:
    • If the manufacturer or distributor does not have current published rates for the vehicle or the vehicle is older than 5 years from the date of vehicle registration in Nepal, the Sum Assured of the vehicle will be ascertained at the beginning of the Vehicle Insurance period at the mutual consent of the insurer and insured.
    • The market price of the insured vehicle shall considered to be as declared Sum Assured in accordance to clause ‘a’ and ‘b’ during the insurance period. Within the insurance period, no additional depreciation shall be deducted on claim for complete loss or constructive total loss.
    • The market price of the vehicle shall be as per ‘a’ & ‘b’ during the period of the insurance policy.
    • If the claims amount exceeds 75% of the declared Sum Assured, it shall be considered the vehicle is fully damaged.
  • Normal wear & tear and general ageing of the vehicle
  • Depreciation or any consequential loss
  • Mechanical / electrical breakdown
  • Loss/damage due to war, mutiny or nuclear risk
  • Damage or accident after change of ownership or 7 days after the end of the policy

Third Party Liability Coverage

  1. Medical and Death Coverage
    • Injury or disability
      Complete Permanent Disability 5 Lakhs
      Permanent loss of both eyes 5 Lakhs
      Permanent Disability of both wrists, or both ankle or body part above that 5 Lakhs
      Permanent Disability of one wrist, or one ankle or body part above that 2.5 Lakhs
      Permanent loss of one eye 2.5 Lakhs
      Any other disability as determined by a specialist doctor dependent on the extent of the disability in proportion to the whole body Percentage of 5 Lakhs
      Medical expenses (important and actual) as a direct result of the accident Not exceeding 2 Lakhs
    • Care taker & Miscellaneous Expenses – Rs.500 per day not exceeding 30 days
    • Last Rites Expenses – Nrs. 25,000/- immediately as required
    • Death of Third Party – 5 Lakhs per person (verification as required by law of Nepal Government by an authorized institution or official). Medical expenses not exceeding 2 lakhs per person, if the deceased third party was undergoing treatment before death.
  2. Total Claim (excluding medical expenses) under Clause 1 shall not exceed 5 lakh rupees per person, which also includes ‘Care taker & Miscellaneous Expenses: Maximum claim under Clause 1 shall not exceed 25 Lakhs.
  3. For loss of third party property damage, the third party shall receive full compensation without depreciation to a maximum limit of 25 lakhs.

For full details see: निजि सवारी साधन बीमा लेख

Car Vehicle Insurance is insurance for your private passenger cars that provides financial protection against physical damage or bodily injury resulting from accidents and or against liability that could arise from incidents in a vehicle, theft of the vehicle, and against damage to vehicle from other events such as keying, weather or natural disasters, collision with stationery objects. The cover may however defer depending on the type of insurance policy.

Comprehensive Insurance, as the name implies, provides comprehensive coverage provides:

  • Damage of own and third party vehicle
  • Damage of own vehicle due to keying, riots, weather or natural disasters
  • Bodily injury of driver & passengers and third party bodily injury
  • Damage to own vehicle sustained by colliding with stationery objects
  • Liability caused to stationery objects due to collision with stationery objects of third party

Third Party Insurance, as per the prevailing laws of the Government of Nepal, is mandatory for all vehicles, including two wheelers. As the name implies, provides Third-party coverage provides:

  • Damage to third party vehicle
  • Bodily injury of driver & passenger of third party bodily injury
  • Bodily injury of other persons in the accident (if accident with pedestrian)
  • Liability caused to stationery objects due to collision with stationery objects of third party

No Claim Discount

After one year of no claim 20%
After two years of regular no claim 30%
After three years of regular no claim 40%
After Four years of regular no claim 45%
After Five years or more of regular no claim 50%
  • The policyholder shall only be able to get the no claim discount if the policy is renewed within 30 days of the expiry of the comprehensive policy.

Coverage of Vehicle up to SI Amount/Vehicle Price under following risks:

  • Fire, Earthquake, thunderstorm
  • Land slide, flood
  • Strom, hailstorm, fog, Ice -frost
  • Spare-parts explosion or fire,
  • Accidental losses
  • Risk caused by Road, Rail way and related paths and transits
  • Additional risk, expanded and/caused by wear& tear and depreciation
  • Loss due to electronic short-circuit and related risks
  • Theft and burglary
  • RISDT- strike, riot and terrorism related risk

Coverage against vehicle risk: Amount equal to the Insurance Policy or the Asset Value whichever is the lowest.

Towing Expenses:

  • Rs. 1,000 if less than 5 kilometers
  • Rs. 2,000 if more than 50 kilometers

Depreciation to be written off during Claim Process

For all types of rubber, plastic or nilon parts, lights, battery, tyres & tubes 50%
For parts made from fiber glass 30%
For glass items 0%

Depreciation to be written off on Spare Parts based on Vehicle for Age

Less than 6 months 0%
6 months to 1 year 5%
1 year to 2 years 10%
2 years to 3 years 15%
3 years to 4 years 25%
4 years to 5 years 35%
5 years to 10 years 40%
More than 10 years 50%

Sum Assured of Complete Vehicle

  • The declared sum assured by the insurer will be official value of the vehicle during the entire period of insurance period.
  • In case when the price list for the vehicle is available from the manufacturer or distributor:
    • Depreciation applicable on the vehicle will be based on the price provided for the specific brand and model of vehicle by the manufacturer or authorized distributor in Nepal, as follows:
      Less than 6 months 0%
      6 months to 1 year 5%
      1 year to 2 years 15%
      2 years to 3 years 20
      3 years to 4 years 30%
      4 years to 5 years 40%
      5 years to 10 years 50%
    • If the manufacturer or distributor does not have current published rates for the vehicle or the vehicle is older than 5 years from the date of vehicle registration in Nepal, the Sum Assured of the vehicle will be ascertained at the beginning of the Vehicle Insurance period at the mutual consent of the insurer and insured.
    • The market price of the insured vehicle shall considered to be as declared Sum Assured in accordance to clause ‘a’ and ‘b’ during the insurance period. Within the insurance period, no additional depreciation shall be deducted on claim for complete loss or constructive total loss.
    • The market price of the vehicle shall be as per ‘a’ & ‘b’ during the period of the insurance policy.
    • If the claims amount exceeds 75% of the declared Sum Assured, it shall be considered the vehicle is fully damaged.
  • Normal wear & tear and general ageing of the vehicle
  • Depreciation or any consequential loss
  • Mechanical / electrical breakdown
  • Loss/damage due to war, mutiny or nuclear risk
  • Damage or accident after change of ownership or 7 days after the end of the policy

Third Party Liability Coverage

  1. Medical and Death Coverage
    • Injury or disability
      Complete Permanent Disability 5 Lakhs
      Permanent loss of both eyes 5 Lakhs
      Permanent Disability of both wrists, or both ankle or body part above that 5 Lakhs
      Permanent Disability of one wrist, or one ankle or body part above that 2.5 Lakhs
      Permanent loss of one eye 2.5 Lakhs
      Any other disability as determined by a specialist doctor dependent on the extent of the disability in proportion to the whole body Percentage of 5 Lakhs
      Medical expenses (important and actual) as a direct result of the accident Not exceeding 2 Lakhs
    • Care taker & Miscellaneous Expenses – Rs.500 per day not exceeding 30 days
    • Last Rites Expenses – Nrs. 25,000/- immediately as required
    • Death of Third Party – 5 Lakhs per person (verification as required by law of Nepal Government by an authorized institution or official). Medical expenses not exceeding 2 lakhs per person, if the deceased third party was undergoing treatment before death.
  2. Total Claim (excluding medical expenses) under Clause 1 shall not exceed 5 lakh rupees per person, which also includes ‘Care taker & Miscellaneous Expenses: Maximum claim under Clause 1 shall not exceed 80 Lakhs.
  3. For loss of third party property damage, the third party shall receive full compensation without depreciation to a maximum limit of 80 lakhs.

For full details see: निजि सवारी साधन बीमा लेख