Vehicle Insurance in Nepal: EV Coverage, Premium & Laws

Vehicle insurance in Nepal is a mandatory aspect for every vehicle owner. The insurance protects you from unexpected financial losses. It also ensures that you meet legal regulations set by Beema Samiti. Whether you are buying a new car or renewing your existing policy, understanding the details related to vehicle insurance helps you save time, money, and stress.

Important Things to Know About Vehicle Insurance in Nepal

1. Third-Party Insurance Is Mandatory

Every vehicle in Nepal must have third-party insurance. The policy covers injuries, death, or property damage caused to others by your vehicle. Driving without third-party insurance is illegal and can result in fines or penalties.

2. Comprehensive Insurance Provides Stronger Protection

Comprehensive car insurance covers damage to your vehicle, fire, theft, natural disasters, accidents, and third-party liability—offering the most complete financial protection.

Types of EV Car Insurance in Nepal

1. Third-Party Insurance (Mandatory)

This is legally required for every car in Nepal.
Covers:

• Damage to another person’s vehicle
• Injury or death of a third party

Does NOT cover:

• Damage to your own vehicle
• Loss due to theft, fire, or natural disasters

This is the cheapest option but offers limited protection.

2. Comprehensive Insurance

Comprehensive insurance provides full protection and is the most recommended option.

Covers:

• Damage to your own car
• Theft and fire
• Natural disasters (flood, landslide, hailstorm)
• Accidents, collisions, rollover
• Third-party liability

It costs more than third-party insurance but saves huge expenses during major incidents.

3. Essential Add-On Covers for EVs in Nepal

• Battery Protection Cover
• Zero Depreciation Cover
• Charging Equipment Cover
• Roadside Assistance
• Personal Accident Cover

Add-ons increase the premium but provide greater financial safety.

Documents Required for EV Car Insurance in Nepal

You need the following:

• Bluebook (or temporary registration for new EVs)
• Citizenship copy
• Driver’s license
• Passport-size photo
• Chassis/VIN and motor number

For claims, additional documents like photos and police reports might be required.

EV Insurance Registration Process in Nepal

Step 1: Choose third-party (mandatory) or comprehensive EV insurance

Step 2: Select add-ons such as battery protection or charger coverage

Step 3: Prepare documents (bluebook, citizenship, license, photos)

Step 4: Apply online or visit an insurance company office

Step 5: Vehicle inspection (if required)

Step 6: Pay premium and receive your policy document

Step 7: Renew annually to maintain legal compliance

Vehicle Insurance Laws & Regulations in Nepal

• Third-party insurance is legally mandatory
• Insurance rates are regulated by Beema Samiti
• Driving without insurance can lead to fines
• Renew your insurance annually to stay compliant

How EV Insurance Premiums Are Calculated

Insurance companies calculate EV premiums based on:

• Vehicle market value
• Battery capacity and motor power
• Car brand and model
• Selected add-ons
• Claim history
• Location and risk level

Higher-value EVs or those with larger batteries usually have slightly higher premiums

Taxes and Fees Related to EV Car Insurance

1. VAT (13%)

A 13% Value Added Tax (VAT) is applied when buying an EV and also on your EV insurance premium.

2. Import Taxes (Based on Motor Power)

Electric vehicles are taxed based on their motor power (kW).

The exact percentage depends on the power category, but EV taxes are generally lower than fuel vehicle taxes.

3. Road Tax / Bluebook Renewal Fee

EVs have a separate road tax system, and the amount is based on their motor power, not engine size.

• 10 to 50 KW = Nrs. 5,000
• 51 to 125 KW = Nrs. 15,000
• 126 to 200 KW = Nrs. 20,000
• 201 and higher KW = Nrs. 30,000

This fee must be paid yearly during bluebook renewal.

4. EV Third-Party Insurance Policy Rate (4 Wheelers)

• Below 20 KW = Nrs. 7,000 to 7,500
• More than 20 KW = Nrs. 8,000 to 8,500

5. Insurance Renewal Fees

When renewing EV insurance, companies may charge:

• A small processing fee
• 13% VAT on the insurance premium

The exact fee depends on the insurance company.

Popular Car Insurance Companies in Nepal

Top companies offering vehicle insurance in Nepal include:

• NLG Insurance
• Shikhar Insurance
• Sagarmatha Insurance
• Nepal Insurance Company
• Himalayan General Insurance
• Prabhu Insurance

Comparing their coverage, claim process, and customer reviews helps you choose the best option. Visit their website to know more about these companies, or visit the nearby office.

Vehicle Insurance Claim Process in Nepal

1. After an Accident

• Keep calm and ensure safety
• Take photos of the damaged vehicle
• Inform the insurance company immediately

2. Damage Assessment

• A surveyor visits and inspects the car
• Damage is evaluated based on policy coverage

3. Claim Settlement

There are two types of settlement:

• Cashless repair: Insurance pays directly to a partner workshop
• Reimbursement: You pay first; the company reimburses later

Filing claims on time improves the chances of smooth processing.

Common Mistakes to Avoid

• Choosing the lowest premium without checking coverage
• Not reviewing policy exclusions
• Forgetting to renew on time
• Ignoring add-ons that could save big losses later
• Not comparing insurers before buying

Conclusion

Vehicle insurance in Nepal is both a legal requirement and a smart financial decision. While basic third-party insurance is mandatory, comprehensive insurance offers much stronger protection. For EV owners, specialized EV insurance ensures coverage for batteries, motors, and charging equipment, which makes it essential for safe and worry-free ownership.

Understanding the requirements, documents, premium factors, and add-on options allows you to choose the policy that provides the best long-term value and protection. Get yourself the best EV of Nepal, Omoda&Jaecoo, get it insured, and drive it with pride.

FAQs About Car Insurance in Nepal