Micro-Insurance companies got permission for third party motor insurance, with a limit of 5 Million Rupees

Kathmandu : Nepal Insurance Authority has amended the micro-insurance directive by increasing the business scope of micro-insurance companies.

The Authority has amended the Micro Insurance Directive (2022 A.D). In that decision, it has been arranged that the micro-insurance company can provide motor’s third party micro-insurance up to 5 million liability.

“Insurers performing Micro non-life insurance business must do business within the limit of maximum liability of 5 million Rupees in motor’s micro-insurance,” it is mentioned in the Micro-Insurance (First Amendment) Directive 2023A.D.

Earlier, under motor insurance, the micro-insurance company was allowed to insure only trailers, tractors, threshers, Agricultural equipments under Motor, Motorcycles, Tricycles, Mopeds, Tampoo, Ricksaws and Carts.

But now after the amendment, there is a provision for motor third party insurance that can be done by Micro-insurance with a limit of 5 million Rupees.