Vehicle insurance in Nepal: third-party vs comprehensive, what it costs and how to claim

Third-party insurance is compulsory for every vehicle in Nepal and follows a fixed national tariff: about Rs 1,500–1,900 for a motorcycle and Rs 3,000–6,000 for a private car, before VAT and add-ons. Comprehensive ("full") insurance is optional and priced mainly on the vehicle's insured value; if you claim, the Insurance Authority expects the surveyor to report within 15 days and the insurer to pay within 35 days of that report.

People search "bike insurance price in Nepal", "third-party insurance price" and "full insurance price" more than almost any other ownership question, and the answers online are often years out of date. This guide uses the Nepal Insurance Authority (NIA) directive and recent news to explain what you must buy, what is optional, what it costs and how to claim. For the yearly renewal routine, see our bluebook renewal and road tax guide.

Third-party vs comprehensive: the difference

Third-party insurance has been compulsory since 1 September 2009, according to a 2024 study in the Journal of Insurance Studies in South Asia. All insurers sell it at the same tariff set by the NIA.

Comprehensive cover adds your own vehicle. Prabhu Insurance's policy page, for example, lists accidental damage; fire, lightning, explosion and self-ignition; earthquake, flood, landslide and storm; theft; damage in transit; riot, strike and malicious damage; and injury or death of the driver and passengers.

What third-party cover pays

• Death: up to Rs 5 lakh until now. The FY 2083/84 budget doubled this to Rs 10 lakh (Beema Post, Bizmandu).
• Injury: up to Rs 3 lakh for treatment, according to Setopati.
• Driver and passengers: the NIA's Motor Insurance Directive 2073, in force since 16 July 2016, gave vehicle staff and passengers equal cover of Rs 5 lakh for death and Rs 3 lakh for medical costs, the same study notes.

If your vehicle hurts someone, their claim is paid by your insurer up to these limits. Without valid cover, there is no insurer to pay, which is why transport offices commonly ask to see a valid policy.

What third-party insurance costs

The tariff depends on vehicle type and engine size. These are the current figures; they exclude 13% VAT and stamp duty.

Motorcycle counter prices: Bizmandu, July 2026, citing the Motor Insurance Rate Directive 2073. Third-party parts: NIA Directive 2066 as amended. For cars, the compulsory driver and passenger accident cover is added on top, so the car price at the counter is higher than the third-party part.

Bike below 150cc1,000 Rs

Bike 150–250cc1,200 Rs

Bike above 250cc1,400 Rs

Car below 1,000cc3,000 Rs

Car 1,000–1,600cc4,000 Rs

Car above 1,600cc6,000 Rs

Third-party part of the premium by vehicle and engine size (Rs, before VAT)

Bike below 150cc	1,000 Rs
Bike 150–250cc	1,200 Rs
Bike above 250cc	1,400 Rs
Car below 1,000cc	3,000 Rs
Car 1,000–1,600cc	4,000 Rs
Car above 1,600cc	6,000 Rs

Source: Nepal Insurance Authority, Motor Insurance Premium Rate Directive 2066 (as amended)

What popular models pay

Example, our arithmetic: the engine size on the official brand site, placed in the bands above.

VAT alone adds 13%: on the Creta's Rs 4,000, that is Rs 520, so Rs 4,520 before stamp duty and accident cover.

Electric vehicles: the directive's private-vehicle table is by cc, and we found no separate published EV figure, so ask your insurer how it rates your EV.

Premiums are about to change

The tariff was last set in 2065 BS, Setopati reported, and the cover has now doubled. The NIA formed a study committee to set new premiums; officials told Bizmandu a rise of about 70% was the preliminary estimate, and told Setopati it could be anything from a third more to double. The chair of the non-life insurers' association argued the increase would be smaller. No new tariff had been published as of 24 October 2026, so check the current price when you renew.

What comprehensive insurance costs

There is no single price. The premium is worked out mainly from the vehicle's insured value, its age and the cover you add, and we could not find an official published rate to print. Practical steps:

• Get two or three written quotes for the same insured value and the same add-ons.
• Insure for a realistic value. A lower value cuts the premium but also cuts what you get after a total loss.
• Ask about deductions: how much you pay yourself on each claim, and whether parts are paid in full or after depreciation.
• Ask about a no-claim discount for a claim-free year, and get it in writing.
• If you have a loan, the bank will usually require comprehensive cover until it is repaid (see our auto loan guide).

Is it worth it? For a new or valuable vehicle, or one you need for work, usually yes: one flood or major repair can cost more than many years of premiums. For an old, low-value bike, third-party alone may be enough. Our monsoon driving guide explains the flood risks.

How to make a claim, step by step

1. Make the scene safe and help anyone hurt. Then photograph the vehicles, number plates, damage and the road.
2. Inform the police for any accident with injury or another party, and for theft. Insurers ask for the police report.
3. Tell your insurer immediately, by phone, the branch or its online intimation form, and get a claim number.
4. Do not repair before inspection. For a minor loss the insurer may assess from photos; for a major loss it appoints a surveyor.
5. Submit the documents (below) and the repair estimate.
6. Surveyor's report within 15 days, then payment within 35 days of that report, according to the NIA deputy director interviewed by The Kathmandu Post. He also noted the Insurance Act's two-month period for claim payments.

The surveyor is required to assess the damage and submit a report within 15 days.

Documents insurers usually ask for

Based on United Ajod Insurance's published claim process and the NIA deputy director's list (policy, incident report, police report, surveyor's report). Lists vary by insurer.

If the insurer delays or refuses

Ask for the decision and the reasons in writing. If you cannot settle it with the company, the NIA has a grievance-handling section on its website where policyholders can complain.

Insurance when you buy or sell

• New vehicle: you need at least third-party cover before registration; see our new vehicle registration guide.
• Used vehicle: after the ownership transfer, put the policy in your own name; see our naamsari guide.
• Yearly: insurance and annual vehicle tax are separate bills; keep both up to date.