Car, Bike, and EV Vehicle Insurance in Nepal: Insurance Renew Charge
There are different type of motor insurance available in Nepal. Various Non life insurance companies are providing vehicle insurance packages in different pricing module.
Car, Bike, and EV Vehicle Insurance in Nepal: Insurance Renew Charge
1. Types of Motor Insurance in Nepal
There are two types of motor insurance available in Nepal:
- Third-Party Insurance:
For example, if your car hits another vehicle or injures someone, the insurance company will pay the compensation. - Often called as a full party Insurance:
This provides wider coverage, including damage to your own vehicle, loss due to the different factors like theft, fire, or natural calamities. Though not mandatory, comprehensive insurance or the full insurance offers better protection of your vehicle
2. How to Get Vehicle Insurance in Nepal
Before chosing or selecting any non life insurance company, you need to have following documents with you:
- A copy of your vehicle’s bluebook or VAT bill (if newly purchased)
- A copy of your citizenship or ID card or NID card
Once the documents are submitted, the company agent will calculates your premium based on your vehicle type, engine capacity (CC), and declared value.
3.How Much Does Vehicle Insurance Cost in Nepal?
1. Insurance cost for Private Cars
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- Vehicle below 1000cc: 0.84% of the declared value for up to Rs. 20 lakh, 1.12% for any value above that, plus Rs. 3,000 service charge.
- Vehicle between 1000cc to 1600cc: 0.87% up to Rs. 20 lakh, 1.12% above that, plus Rs. 4,000.
- Vehicle above 1600cc: 0.90% up to Rs. 20 lakh, 1.12% above that, plus Rs. 6,000.
- Vehicles older than 10 years are charged an additional 10% on the total premium.
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Minimum premium for private vehicle damage coverage is extra Rs. 2,000.
| Engine Capacity (CC) | Coverage (Declared Value) | Insurance Rate | Additional Charge | Third-Party Liability |
|---|---|---|---|---|
| Below 1000cc | Up to Rs. 20 lakh – 0.84%, Above Rs. 20 lakh – 1.12% | Rs. 3,000 | Rs. 3,000 | Rs. 3,000 |
| 1000cc–1600cc | Up to Rs. 20 lakh – 0.87%, Above Rs. 20 lakh – 1.12% | Rs. 4,000 | Rs. 4,000 | Rs. 4,000 |
| Above 1600cc | Up to Rs. 20 lakh – 0.90%, Above Rs. 20 lakh – 1.12% | Rs. 6,000 | Rs. 6,000 | Rs. 6,000 |
2. Insurance cost for Electric Vehicles
- Ev up to 20 kW: 0.63% up to Rs. 20 lakh, 0.84% above that, plus Rs. 3,000.
- Ev above 20 kW: 0.65% up to Rs. 20 lakh, 0.84% above that, plus Rs. 4,000.
- For electric vehicles older than 10 years, an extra 10% premium is applied.
- Electric vehicles generally have lower insurance costs than petrol or diesel vehicles.
| Power (kW) | Coverage (Declared Value) | Insurance Rate | Additional Charge | Third-Party Liability |
|---|---|---|---|---|
| Up to 20 kW | Up to Rs. 20 lakh – 0.63%, Above Rs. 20 lakh – 0.84% | Rs. 3,000 | Rs. 3,000 | Rs. 3,000 |
| Above 20 kW | Up to Rs. 20 lakh – 0.65%, Above Rs. 20 lakh – 0.84% | Rs. 4,000 | Rs. 4,000 | Rs. 4,000 |
3. For Motorcycles
Below 150cc:
- 1.5% of declared value for up to 5 years
- Add 15% for 5–10 years old bikes, and 25% for over 10 years.
- Third-party + personal accident insurance: Rs. 1,500.
- 150cc–250cc: Same rate (1.5%), with similar age-based increases.
- Third-party + personal accident: Rs. 1,700.
- Above 250cc: 1.5% base rate, with 15–25% increase for older bikes.
- Third-party + personal accident: Rs. 1,900
- Minimum insurance premium for motorcycle damage coverage is Rs. 1,000.
- For older bikes, the premium gradually increases based on age.
Vehicle Insurance Rate Table:
| Engine Capacity (CC) | Vehicle Age | Insurance Rate | Third-Party + Personal Accident |
|---|---|---|---|
| Below 150cc | Below 5 years – 1.5% | Rs. 1,500 | Rs. 1,500 |
| Below 150cc | 5–10 years – 1.5% + 15% extra | Rs. 1,725 | Rs. 1,500 |
| Below 150cc | Above 10 years – 1.5% + 25% extra | Rs. 1,875 | Rs. 1,500 |
| 150cc–250cc | Below 5 years – 1.5% | Rs. 1,700 | Rs. 1,700 |
| 150cc–250cc | 5–10 years – 1.5% + 15% | Rs. 1,955 | Rs. 1,700 |
| Above 250cc | Below 5 years – 1.5% | Rs. 1,900 | Rs. 1,900 |