The Nepal Insurance Authority (NIA) has begun drafting new guidelines to introduce separate insurance premium structures for electric vehicles (EVs) and conventional petroleum-powered vehicles.
The insurance regulator said it is reviewing international practices and consulting key stakeholders, including the NADA Automobiles Association of Nepal, the Nepal Automobiles Importers and Manufacturers Association (NAIMA), and the Nepal Insurance Association, to develop an appropriate pricing framework for EV insurance.
According to NIA Director Nirmal Adhikari, insurance premiums for electric vehicles could be higher than those for conventional vehicles. He noted that international markets generally charge higher EV premiums due to factors such as specialized driver training requirements, higher repair costs, and increased emphasis on road safety.
The authority said the rapid growth of EV adoption in Nepal over the past decade has been accompanied by a sharp rise in insurance claims, particularly during the last four years. As a result, it has become necessary to review the existing premium structure.
To determine appropriate insurance rates, the NIA is assessing the cost of EV spare parts, repair and maintenance services, and prevailing market prices of electric vehicles. It is also analyzing recent motor insurance claim data to develop a risk-based premium model that reflects the unique characteristics of electric vehicles while ensuring the long-term sustainability of Nepal’s motor insurance sector.
