NIA Plans Separate Insurance Premiums for Electric and Fuel-Powered Vehicles

KATHMANDU; The Nepal Insurance Authority (NIA) is preparing to introduce separate insurance guidelines for electric vehicles (EVs) and petroleum-powered vehicles, a move that could result in higher insurance premiums for EV owners.

The insurance regulator has begun reviewing international practices and consulting key stakeholders, including the NADA Automobiles Association of Nepal, the Nepal Automobiles Importers and Manufacturers Association, and the Nepal Insurance Association, to develop the new framework.

According to NIA Director Nirmal Adhikari, EV insurance premiums may be set higher than those for conventional fuel-powered vehicles, reflecting global practices. He said factors such as specialized driver training, higher repair costs, and additional road safety considerations contribute to the higher premiums charged for EVs in many countries.

Although EV adoption in Nepal began to gain momentum about a decade ago, insurance claims involving electric vehicles have increased sharply over the past four years, according to NIA records.

The authority is currently assessing the cost of EV spare parts, repair and maintenance services, and vehicle prices. It is also analyzing recent motor insurance claim data to determine an appropriate premium structure before finalizing the new guidelines.