Nowadays, the number of users of motor vehicles has got tremendous increment. But, Nepal isn’t still able to manage the roadway infrastructure. Unmanaged traffic, quality less road, lack of parking, lack of motor protection, etc have made the use of motor vehicles challenging. With it, the number of accidents associated with roadways is also increasing. So the issue of protecting own property as well as to secure the life of driver as well as the passengers have become a primary issue. So, after the purchase of motor vehicles, the need of ensuring it is also essential.
What is motor insurance?
The protection of transport vehicles, running on the road through the mechanical power, i.e. motorcycle, car, jeep, truck, tractor etc from the probable risks associated with it is motor insurance. Road accident, chaos, theft, earthquake are some instances, from the protection of which, motor insurance is taken. This plan covers loss, arising due to various reasons, to the vehicle as well as to the third party and compensates for it.
Motor Insurance Guidelines
From Shrawan 1 of 2073, the guideline for the rate of motor insurance has been regulated. Insurance board has regulated “Motor Insurance Rate related Guideline, 2073” by amending the “Motor Insurance Rate related Guideline, 2066”. As per amended guideline, for the passengers travelling in a vehicle, a policy of RS500000 per sit has been set. Being within the limit of that policy, for the funeral expenses, an immediate sum of RS50000 has been set, for the death of the third party, driver, passenger, helper, sub driver. Cost of treatment, being within the limit of policy amount, has been set as RS500 per day up to 45 days. For the maximum policy limit of RS300000 of the cost of, mutilation as well as the medicine of the third party, driver, passenger, helper, sub driver, checker, or other employees, there is a provision for making separate claims, being within the particular limits. For the death of the third party due to an accident, the policy amount of RS 500000, and for medicines, being within the limit of RS300000of actual medicine cost, a limit has been set up.
The policy amount has been set up as RS500000 per seat. Being within the limit of policy amount, in the name of funeral expense, an immediate sum of rupees fifty thousand rupees has been specified for the third party, driver, passengers, and helper’s death. For the death of the third party due to the accident, the policy amount of RS 500000, and for medicines, being within the limit of RS300000of actual medicine cost, a limit has been set up.
Risks covered by the policy
The insurance policy indemnifies for the loss associated with lightning , fire disaster, explosion of the vehicles or the parts of it, earthquake, flood, landslide, storm calamity, hailstorm, snow , accidents due to external causes , barrier in use to the wearing and tearing of vehicle , theft, or for the risks in course of internal water transport, rail transport , road transport or elevators .
Situation, where insurer doesn’t, accepts the claim
The total damage of the transport vehicle risk is not carried by the insurer. Depreciation based on the use of vehicle, electronic or mechanical disfunctioning, damage of tier-tube in the case other than the accident of vehicle, the theft of motor parts without the theft of vehicle, loss due to the consumption of an intoxicating substance by the driver, etc don’t attract the claim acceptance by the insurer. Claims for the loss arising due to the strike, chaos or riots are not accepted until a valid proof of such incidents is shown to the insurer. Any fraudulent claim made by the insured or in making claim, false advocacy is given by the insurer or an individual with the right to speak in favor of insurer’s side intends to take any unethical benefit from the policy- or knowingly causing an accident to happen then under this policy , the insured shall be deprived all benefits.
While taking insurance, the insured has to compulsorily follow some conditions. Loss caused by the accident arising due to the driving of an individual, other than the driver shall not be liable to be accepted.Any consequential loss( loss as a result of the accident covered by the policy) shall not be made liable to the insurer for acceptance.
Companies in Nepal doing Motor Insurance
- Nepal Insurance Company Limited
- The Oriental Insurance Company Limited
- National Insurance Company Limited
- Himalayan general insurance company limited
- United Insurance Company Limited
- Premier Insurance Company Limited
- Everest Insurance Company Limited
- Neko Insurance limited
- Sagarmatha Insurance Company Limited
- Prabhu Insurance Company Limited
- NB Insurance Company Limited
- Prudential Insurance Company Limited
- Shikhar Insurance Company Limited
- Lumbini General Insurance Company Limited
- NLG Insurance Company Limited
- Siddhartha Insurance Limited
- Rastriya Bima Company Limited