The number of motor insurance policies issued in Nepal grew by 19.42% during the first two months of the current fiscal year. Data from the Nepal Insurance Authority shows that insurers issued 262,414 policies by the end of Bhadra, compared to 219,745 during the same period last year. This is an increase of 42,669 policies.
Premium collections also climbed. Non-life insurance companies gathered Rs 2.61 billion in motor premiums during these two months. This figure is Rs 302 million higher than the Rs 2.31 billion collected in the same period of the previous fiscal year.
Industry experts link this trend to heightened awareness among vehicle owners following recent natural disasters and public protests. While both comprehensive and third-party policies are available, third-party coverage accounts for more than two-thirds of the total volume. Third-party insurance remains mandatory for annual bluebook renewal in Nepal. Comprehensive insurance is optional, though it is typically required for vehicles bought through bank financing.
Writes on vehicle pricing, taxation and the Nepali auto market from ongoing tracking of distributor price lists. Editorial policy.
