KATHMANDU, Aug 1: The Nepal Insurance Authority (NIA) has begun preparations to introduce guidelines that will differentiate insurance premiums for electric vehicles (EVs) and petroleum-powered vehicles.
According to the NIA, it has been reviewing international practices to formulate separate guidelines for EV insurance. For this purpose, the regulator has also started consultations with stakeholders, including the NADA Automobiles Association of Nepal, the Nepal Automobiles Importers and Manufacturers Association, and the Nepal Insurance Association, among others.
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Nirmal Adhikari, director of the NIA, said insurance premiums for EVs could be higher than those for conventional petroleum-powered vehicles. According to him, EV insurance premiums are relatively higher in international practice due to factors such as driver training requirements and the need for greater attention to road safety.
The use of EVs began to grow in Nepal about a decade ago. However, insurance claims have surged significantly, particularly over the past four years, according to NIA records.
The NIA said it is studying the cost of spare parts, related services, and the market prices of EVs. In addition, it is reviewing motor insurance claims from recent years to determine the most appropriate model for setting premium rates.
