Auto insurance in Nepal is often negligent by residents. They tend to think auto insurance as unnecessary expenses more than that of helpful investment. Auto insurance provides financial support your vehicle meets into unexpected accidents. So, let us know about ‘what is auto insurance?’ and ‘why is it necessary?’
Auto insurance or motor insurance is a policy purchased by vehicle owners to mitigate costs associated with getting into an auto accident. With auto insurance, the company pays for all or most of the cost associated with an auto accident. The cost is borne by insurance companies with the premiums paid annually by the insurer. Therefore, the insurer does not have to pay for the damages out-of-pocket.
Auto insurance is an insurance policy that the insurer activates for cars, trucks, motorcycles, and other road vehicles. It is primarily used to provide financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise from incidents in a vehicle.
The only thing certain in life is uncertainty. The future is full of uncertainties and one can never be certain of what the future holds for us. Even when one is sufficiently precocious and preventive, accidents and financial loss cannot be omitted at times that can result in life changing misfortune to oneself and others. Motor Insurance Policy covers motor vehicles against any loss or damage caused by accidents and your legal liability to third parties for bodily injury or property damage. Auto insurance provides protection for yourself, your vehicle, and for others in such misfortune events. It covers damage to your own vehicle, damage to another person’s vehicle, injury or death of a passenger or member of public as a result of an accident; this policy covers a crucial area of risk. One can choose between Comprehensive Motor Policy and Third Party Policy depending upon the nature of coverage desired.
What auto insurance covers?
Here, we have listed what the auto insurance covers:
- Fire, lightening or self-ignition or explosion of parts of the vehicle.
- Earthquake, floods, landslides, hurricanes, and snow.
- Sudden/accidental causes of loss or damage.
- Theft, robbery/masked robbery.
- Bodily injury and medical fees.
- Damage to third party and related claims.
- Damage or loss against riot, strike, war, terrorism, or malicious act.
- Cover of loss/injury/death caused to the passengers and driver
Insurance companies that provide auto insurance in Nepal
Auto insurance companies in Nepal provide security to insurers against accidents and damage of their vehicles. The risk of vehicle damage and accidents is inevitable. Here are the details of some Insurance companies that provide auto insurance.
Ajod Insurance Limited came to operation in 2018 which was founded and supported by leading commercial banks, bankers and highly fervid professionals. It started with a capital structure of Nrs. 1,000,000,000.
CTC Mall (7th Floor), Baagdurbar Marga, Sundhara, Kathmandu
Everest Insurance Company Limited has been serving in the insurance sector for over 2 decades and is one of the well known insurance companies of nepal. Its vision is to provide dependable insurance solutions to its customers.
Hattisar, Kathmandu, Nepal
01 – 4444717, 4444718, 4445088, 4445090
Himalayan General Insurance Company Limited (HGI) started its operations in December 1993 to write Insurance Policies after obtaining license from the Insurance Board of Nepal to underwrite General Insurance (Non-life). It worked with Swire Blanch Asia Ltd. and have been in operation for more than 2 decades.
HGI house, Babar Mahal, Kathmandu, Nepal
977-1 4231788, 4213014
IME General Insurance Limited operated from February 1st 2001 (Magh 19, 2057) Company has an authorized capital of Rs.2,000 million and paid up capital of Rs. 1020.6 million.
Narayanchaur, Naxal, Kathmandu Nepal
+977 1 4411520, 4411735, 4425508, 4425509
Nepal Insurance Company Limited (NICL) is a pioneer non-life insurance company, established in 1947 A.D. by Nepal Bank Limited and the general public with 51% and 49% shares respectively. The company was incorporated on 2051-09-06 under the Company Act 2021 and operated as a general insurance company after obtaining a license on 2053-02-17 under the insurance act 2049.
Ameer Bhawan, 1st Floor, Ganeshthan, Kamaladi
4221353, 4228690, 4245565/68
Siddhartha Insurance Limited (SIL), established in 2006 is one of the renowned non-life (general) insurance companies in Nepal with a strong presence in the form of 78 Branches all over Nepal.
Siddhartha Insurance complex, 4th Floor,
Babarmahal (Hanumansthan), Kathmandu
5705766, 5707190, 5705447