Implemented the policy to end the road blockades demanding compensation after almost every accident
The Ministry of Finance of Nepal has declared to enforce compulsory third-party insurance to all vehicle owners in the country – reported Nepal News.
As per the new system, the insurance companies are liable to pay at least Rs500,000 in case of death in a road accident to the kin of the deceased and cover the treatment cost of up to Rs200,000 in case of injuries, on behalf of the vehicle owner.
Reportedly, the premium of vehicle insurance has increased with the increment in liability. The insurance premiums range from Rs1,000 to Rs10,000 per annum. The premium for a motorcycle is Rs1,000, a 1000 CC car is Rs3,000 and a bus with more than 35-seats is Rs10,000.
Although, the insurers had been offering third-party insurance as per request of the vehicle owner, it was not mandatory in the past. The government had implemented the compulsory third-party insurance policy to end the road blockades demanding compensation after almost every accident, quoted nepalnews.com.