KATHMANDU: The number of motor insurance policies issued in Nepal increased by 19.42% in the first two months of the current fiscal year, according to the Nepal Insurance Authority.
Insurance companies issued 262,414 motor insurance policies by the end of Bhadra (mid-September), up from 219,745 during the same period last fiscal year. This represents an increase of 42,669 policies.
Insurers say vehicle owners have become more aware of the need for insurance following losses caused by the Gen Z protests and natural disasters. The authority’s data also shows a steady rise in motor insurance policies since the protests in September 2025.
Insurance companies offer both comprehensive and third-party motor insurance. The authority has not published a breakdown of the two types, but insurers say third-party policies account for more than two-thirds of the total.
Motor insurance premiums exceed Rs 2.6 billion
The increase in policies has also raised premium collections. Non-life insurance companies collected Rs 2.61 billion in motor insurance premiums during the first two months of the current fiscal year.
The amount was around Rs 302 million higher than the Rs 2.31 billion collected during the same period last fiscal year.
Motor insurance covers losses arising from risks such as road accidents, theft, riots, floods, landslides and earthquakes, depending on the policy and its terms.
Third-party insurance covers liability for damage or injury caused to others and is mandatory for vehicle registration renewal in Nepal. Comprehensive insurance is generally optional and can cover damage to the insured vehicle, subject to policy conditions. However, vehicles purchased through installment financing are generally required to have comprehensive insurance.
