Vehicles Renewed Without Mandatory Third-Party Insurance Through Bribes

Kathmandu — Authorities have found that vehicle renewals are being processed without the legally required third-party insurance. For motorcycles, the insurance premium required for renewal is about NPR 1,800. For four-wheelers, the cost ranges from NPR 7,000 to 8,000. However, by paying a bribe of around NPR 500, vehicle owners have been able to renew their vehicles without obtaining insurance.

Most applicants renewing vehicles at the Transport Management Service Office in Sallaghari were found to be uninsured. Bikash Poudel from Sindhuli said he renewed his motorcycle there by paying NPR 500 instead of purchasing insurance.

“I had gone to pay the tax for my brother’s motorcycle and was planning to get insurance,” he said. “Someone approached me and said it wasn’t necessary and that I could just pay NPR 500. I didn’t need insurance, and the renewal was completed.”

Similar practices have been reported at transport offices across the Kathmandu Valley. At the Transport Management Office for small and large vehicles in Ekantakuna, renewals are also being processed without insurance. Middlemen, working in collusion with staff, are facilitating the process. In some cases, individuals linked to insurance companies are issuing fake documents for small commissions. This collusion not only violates the law but also puts lives at risk.

Transport entrepreneurs say that while vehicle owners may save money in the short term by paying NPR 500 instead of NPR 1,800, they face serious risks. Accidents are unpredictable, and if a major incident occurs requiring compensation or medical expenses for a third party, the vehicle owner must bear the full cost without insurance. In such situations, they may even be forced to sell their property. They could also face legal penalties for violating the law.

Vijay Bahadur Swar, President of the Nepal National Transport Entrepreneurs Federation, said that trying to save a small amount now could result in much larger financial losses later. He emphasized that third-party insurance is meant to protect vehicle owners and warned that avoiding it is a serious risk. He also called for stricter enforcement by authorities.

Badri Prasad Niraula, Chief of the Transport Management Service Office in Sallaghari, said that vehicle renewal cannot be carried out without third-party insurance and denied that such renewals are officially permitted. He urged the public to report any such incidents so that action can be taken.

He acknowledged that fake insurance documents are sometimes detected. According to him, officials can identify obvious cases, but some applicants present insurance documents on mobile phones, making verification difficult. If officials reject them, service seekers complain, but accepting them also carries risks.

He added that some cases of renewal without insurance may occur due to deception, but action will be taken if such incidents are found. To address the issue, preparations are underway to introduce an online renewal system. Once QR codes are implemented in vehicle Bluebooks, such problems are expected to decrease.

Around 1,000 people visit the Sallaghari office daily for vehicle renewal services.

Under the Vehicle and Transport Management Act, 2049 (1993 AD), and the Motor Insurance Rate Directive, 2073 (2016 AD), third-party insurance is mandatory for legally operating a vehicle on public roads.

The policy provides compensation of up to NPR 500,000 in case of death of a third party or employee, and up to NPR 300,000 in case of injury.

The Ministry of Labour, Employment and Transport of Bagmati Province has begun introducing QR codes in vehicle Bluebooks through an online system.