KATHMANDU: The number of motor insurance policies has increased in the current fiscal year 2025/26, according to data released by the Nepal Insurance Authority.
During the first six months of the fiscal year, from mid-July to mid-January, motor insurance policy issuance rose by 3.39 percent compared to the same period last year.
Non-life insurance companies issued a total of 811,066 motor insurance policies during the period. This is an increase of 26,622 policies year-on-year. In the same period of the previous fiscal year, 784,444 motor insurance policies were issued.
The data shows a sharp rise in motor insurance uptake after the Gen Z movement on September 8 and 9. During the unrest, around 12,500 public and private vehicles were damaged or destroyed. However, only about 2,300 vehicles had insurance coverage and were able to file claims.
Insurers say the large losses faced by vehicle owners during the incident increased awareness about the importance of motor insurance.
Spending on motor insurance has also increased significantly. In just six months, vehicle owners spent more than Rs 8 billion on insurance premiums.
Non-life insurance companies collected Rs 8.01 billion in motor insurance premiums during the period. This is Rs 1.36 billion more than the same period last year. In the previous fiscal year, insurers collected Rs 6.64 billion in motor insurance premiums by mid-January.
Insurance companies provide both comprehensive and third-party motor insurance. The authority has not disclosed a breakdown by policy type. However, insurers estimate that more than two-thirds of total policies are third-party insurance.
Motor insurance provides protection against losses caused by road accidents, theft, riots, floods, landslides, earthquakes, and other natural disasters.
Third-party motor insurance is mandatory for vehicle registration renewal. Comprehensive insurance is optional. However, vehicles purchased through installment or financing schemes must have comprehensive insurance.
Province-wise policy distribution
In the first six months, Bagmati Province recorded the highest number of motor insurance policies, with 391,337 policies issued.
Koshi Province issued 90,448 policies. Madhesh recorded 60,456 policies. Gandaki issued 90,718 policies. Lumbini recorded 123,846 policies. Karnali issued 13,397 policies, while Sudurpaschim recorded 40,855 policies.
