Shikhar Insurance Co. Ltd.

Vehicle Insurance

A vehicle can be insured under Motor Vehicle Insurance Policy. This policy covers the damage to your vehicle and the damage done by your vehicle to a third party.

Motor Vehicle insurance provides 2 types of coverage.

Comprehensive Insurance Policy: Comprehensive insurance policy indemnifies the insured for any kind of physical damage to the vehicle caused by an accident. It also includes compensation to be paid to the third party for death or bodily injuries or loss or damage of property.
Third Party Liability Insurance Policy: If the insured vehicle causes loss of life or property of the third party, the insurer indemnifies the third party for the loss.

Third-party liability insurance is compulsory in Nepal.

Geographical Region:

Motor Vehicle insurance policy issued by Nepalese insurers covers the territory of Nepal, India, Bangladesh, Bhutan and Tibet. If the motor vehicle meets with an accident in the above-mentioned territory, the insurer indemnifies the insured for the loss or damage.

Under Comprehensive insurance, the following risks are covered for material damage to the vehicle

Fire, Lightning, Explosion, Self-ignition
Earthquake, Flood, Inundation, Landslide, Storm, Hailstorm, Snow, Frost
Accidental external means
Damage to the vehicle due to mechanical breakdown
Theft, Burglary
Whilst in transit
Terrorism Group Risks (Optional Risks that can be included for an extra premium)
Third Party Liability covers the liability of the vehicle to pay compensation to third party personal injury (including Death) and property damage arising out of the use of the Motor Vehicle.

Exclusion

Motor insurance policy does not cover:

Consequential loss
Depreciation, wear and tear
Mechanical or electrical breakdown
The damage resulting from participating in motor race, durability test and speed test
The damage caused by atomic radiation and the radiation of atomic weapons
The damage caused by war or warlike operation and civil war
The claim which is not supported by an insurable interest
The damage caused by the accident occurred outside the geographical region mentioned in the policy
The liability resulting from a contract
The damage caused by overuse of the vehicle, exceeding the limitation
The damage if the motor vehicle is driven by a person who has no driving licence
The damage if the driver is under the influence of alcohol or drugs
The damage caused by the accident occurred during the period in which the vehicle is in possession of the government authority