Car Insurance Prices in Nepal, Necessary Documents Required

Car insurance prices in Nepal vary depending on several factors, including the type of car, the age and driving history of the driver, and the geographical location. In general, however, car insurance prices in Nepal are relatively affordable compared to other countries in the region. For example, a typical comprehensive car insurance policy for a mid-sized car in Nepal would cost around Rs. 20,000 per year, while the same policy in India would cost around Rs. 60,000 per year.

One of the main reasons why car insurance prices are lower in Nepal is that the government has put in place several regulations to control the industry. For example, insurance companies are required to offer a minimum level of coverage, and they are not allowed to charge excessively high premiums. As a result, car insurance prices in Nepal tend to be much more reasonable than in other countries where the government has less control over the industry.

If you are planning on driving in Nepal, it is important to make sure that you have adequate car insurance coverage. While car insurance prices are relatively affordable, the costs of an accident or car repairs can be very high. As such, it is always better to be safe than sorry and ensure that you are fully protected in case of any unforeseen circumstances.

The average insurance price for a new car in Nepal is NPR 15,600 per year. This figure can vary depending on the make and model of your car, as well as your driving history.

To get the best deal on car insurance, it’s important to compare quotes from multiple providers. By doing so, you can be sure that you’re getting the coverage you need at a price that fits your budget.

When shopping for car insurance, be sure to ask about discounts. Many insurers offer discounts for safe drivers, good students, and more.

Every vehicle on the road runs the risk of incurring legal liability to pay compensation to a third party for death, bodily injury, or property damage caused by the vehicle’s use, with additional heavy loss due to accidental damage to the vehicle itself. This policy protects vehicle owners against such occurrences. Private car owners in Nepal who have car insurance can benefit from this insurance coverage against a wide range of risks, including third-party personal injury and property damage, as well as riots and strikes, earthquakes, floods, personal injury to passengers and drivers, and so on.

In Nepal, the following documents are required for car insurance:

• Details about the vehicle (copy of bill book, purchase invoice, authorized email by insured, etc.)
• The form of the proposal finalized
• Filled KYC form
• Documents of support (copy of citizenship, VAT, PAN Reg, etc.)
• Insured contact details (phone/mobile number, email, etc.)

2 Types of Motor Policy:

• Comprehensive insurance
• Third-party insurance

Insurance period:

• For comprehensive = 1 year or short period
• For third-party = only 1-year

Coverage extends to

• Driver: Rs. 500,000/-
• Conductor: Rs. 500,000/-
• Helper: Rs. 500,000/-
• Passenger: Rs. 500,000/- (per pax)
• Medical Expense: Rs. 300,000/- (per pax)

Third-party coverage limits:

Depart.	For Bodily Injury	For Third-Party Assets Loss
Motorcycle	25 lakhs	25 lakhs
Private Vehicle	80 lakhs	80 lakhs
Commercial Vehicle	50 lakhs	50 lakhs

Injury and disability:

Based on a medical report approved by the legal authority, the company will indemnify the third party up to the following amount.

Detail of Loss	Compensation Amount (Rs.)
complete and permanent disability	500,000
If both eyes are permanently lost,	500,000
In regards to losing both wrists, arms, ankles, or feet, or experiencing physical disability	500,000
Regarding the loss of one wrist, arm, ankle, or eye	500,000
total blindness in one eye	250,000
Regarding one wrist, one arm, one ankle, one foot, or a physical impairment	250,000
Regarding the physical severance as	as per medical reports subject to % of 500,000
medical costs as a result of the vehicle accident not not	not exceeding 300,000 or actual expenses whichever less

 

In the event of multiple losses, the company’s total liability shall not exceed Rs. 500,000/- in respect of the most recent loss.

1. Associated or incidental expenses: If a third party is hospitalized for treatment as a result of an accident caused by or arising from the use of the Motor Car, the company will indemnify Rs. 500/- per day for a maximum of 45 days, which includes the above medical treatment.
2. Expenses for an ambulance: The company will compensate you up to Rs. 10,000 or your actual expenses, whichever is less.
3. Funeral costs: The company will pay Rs. 50,000/- in the event of a third party’s death as a result of an accident caused by or arising from the use of a motor vehicle.
4. Death: Based on the report approved by the legal authority, the company will indemnify the third party up to Rs. 500,000/- per person. Furthermore, the company will indemnify up to Rs. 300,000/- per person or actual medical expenses, whichever is less, during treatment at the hospital.

Section II limits the maximum total limit of liability to Rs. 8,000,000/- in a private car, Rs. 5,000,000/- in a commercial vehicle, and Rs. 2,500,000/- in an MCY per accident.

Exclusion:

The insurer providing car insurance in Nepal is not obligated to make any payment in respect of;

• Depreciation, wear and tear, mechanical or electrical breakdowns/failures, and/or breakage are all examples of depreciation.
• Unless the vehicle has been in an accident, there will be no loss or damage to the tire/tube.
• Vehicle loss/damage when the driver is under the influence of alcohol or drugs
• Loss/damage sustained or incurred more than 7 days after any change in or termination of the insured’s interest in the insured vehicle
• Vehicle use outside of the geographical area
• Deductibles
• Ionizing radiation, pollution, or radioactivity
• Nuclear weapons, war, and warlike operations

Condition:

• Contribution principle and average condition
• Material factual disclosure
• When a loss occurs, immediate written notice must be provided.
• Policy cancellation/short-term insurance
• Policy expiration date (Local time – Midnight)
• There will be no recovery of claim discounts at the time of insurance transfer.
• The transfer of ownership does not affect the driver/helper/conductor/passengers’ PA coverage.
• The insured must provide all evidence at the time of the claim.

Is Car Insurance Required If Someone Borrows My Vehicle?

Yes, car insurance is required if someone borrows your vehicle. Typically, the car insurance policy follows the vehicle being insured. So, if you lend your car to a friend, your auto insurance will typically cover the majority of claims that may arise while your friend is driving your car.

Here are a few examples of how your car insurance can be used to cover another driver who is using your vehicle.

• You lend your car to a friend who has an errand to run. He accidentally hits another car while running the errand. Your collision insurance may be able to help cover the costs of the damage to your vehicle. You must report the accident to your insurance company and pay the deductible. Your insurance rates may rise as a result of the accident claim.
• You may also be held liable for the other driver’s property damage and bodily injury. Your friend’s insurance may come into play in some cases to help cover excess damages that your policy does not cover.
• If your friend does not have car insurance, you will almost certainly be held fully responsible for all damages caused by the at-fault accident. If your friend is in an accident while driving your car but is not at fault, the other driver who is at fault will usually pay for the damages.
• It’s also worth noting that you can exclude people from your auto insurance policy. This means that if certain people drive your car, they will not be covered by your auto insurance.

If someone other than you will be driving your car regularly, check to see if you have adequate coverage.

Calculating Car Insurance

Every car insurance company calculates rates differently for your auto insurance quote. However, there are some critical factors that all insurers will consider, such as:

• Your Driving History: If you have no traffic violations or accidents on your record, it demonstrates that you are a safe driver, which may result in a lower car insurance cost. If you have any accidents, tickets, or claims on your record, your car insurance rate will most likely be higher.
• Your marital status and age: In general, the more experience you have behind the wheel, the older you are. This means you’re less likely to be involved in an accident, which can result in lower insurance rates.
• Your Residence: Living in a more densely populated urban area can increase your chances of being involved in a car accident or being robbed. As a result, your car insurance may be more expensive than those who live in rural areas.
• Your vehicle’s make and model: Cars are subjected to crash safety tests to determine the likelihood of serious injuries in the event of an accident. You may be able to get a lower car insurance rate if your vehicle is newer and has a high safety test score.
• Coverage Needs: The amount of coverage you require is one of the most important factors influencing the cost of your insurance premium. Your car insurance rate may be higher if your state requires you to carry higher liability limits or if you insure multiple vehicles. Remember that the cheapest car insurance isn’t always the best insurance because it may not meet your needs or protect you when you need it most. Consider your comprehensive and collision coverage options, as well as any additional optional coverages.

Read Next: 15 Best Startup Ideas in Nepal