Motorcycle insurance policy

The insurer shall provide compensation for loss/damage caused to the motorcycle mentioned in the schedule of this insurance policy (hereinafter referred to as “vehicle”), or to the parts attached thereto, due to any of the following causes:

(a)Fire, explosion, self-ignition of the vehicle or parts attached thereto;

(b)Earthquake;

(c)Flood/submergence;

(d)Landslide/landslip;

(e)Storm, hail, snow or frost;

(f)Accidental/accident-related or other causes;

(g)Loss/damage to the vehicle arising as a consequence of wear and tear caused by use of the vehicle, or as a result of mechanical or electrical obstruction/failure/breakdown;

(h)Theft, housebreaking or burglary;

(i)While loading/unloading or transferring the vehicle to or from a road, railway, inland waterway, lift or elevator.

Where, due to any of the causes mentioned in Clause 1, the vehicle parts listed below have to be replaced because of loss/damage to the vehicle, depreciation shall be applied as follows:

(a)50% depreciation on all types of rubber, lights, batteries, tyres and tubes.

50%

(b)30% depreciation on parts made of fibre glass.

30%

(c)0% depreciation on articles made of glass.

0%

Where, due to any of the causes mentioned in Clause 1, parts other than those mentioned in Clause 2 have to be replaced because of loss/damage to the vehicle, depreciation shall be applied according to the age of the vehicle calculated from the date of registration in Nepal, as follows:

When providing compensation for partial loss/damage to the vehicle caused by any of the causes mentioned in Clause 1, the insurer shall deduct the depreciation mentioned in Clause 2 or Clause 3, as applicable, as well as the amount of the compulsory excess and voluntary excess mentioned in the schedule of this insurance policy, and shall pay the remaining amount.

Notwithstanding anything written in Clauses 1, 2 and 3, the insurer shall not make payment in any of the following circumstances:

(a)Depreciation resulting from use of the vehicle, or mechanical or electrical obstruction/failure/breakdown;

(b)Damage to tyres/tubes occurring where no accident involving the vehicle has occurred;

(c)Theft/housebreaking/burglary of parts alone where the vehicle itself has not been stolen;

(d)Loss/damage caused because the driver consumed alcohol or narcotic substances;

(e)Loss/damage occurring more than 35 days after the insured's right or interest in the vehicle has changed or terminated.

35 days

If, due to any of the causes mentioned in Clause 1, the vehicle becomes incapable of being driven, the insurer shall bear the necessary or actual expense required to bring the vehicle from the accident site to the place of repair nearest to the vehicle.

Distance up to 100 km from the accident site

Rs. 3,000

Distance exceeding 100 km

Rs. 5,000

Subject to fulfillment of the following conditions, the insured may have the vehicle repaired in relation to loss for which the insurer may become liable under this insurance policy:

(a)The estimated cost of such repair shall not exceed Rs. 3,000;

Rs. 3,000

(b)A detailed statement of the repair cost shall immediately be made available to the insurer;

(c)The insured shall cooperate by providing necessary evidence so that the insurer can determine that such repair was necessary and that the expense incurred for it was reasonable.

The sum insured of the vehicle shall be determined as follows:

(a)At the beginning of each insurance period, the value declared by the insured shall be deemed to be the sum insured of the vehicle for that insurance period.

(b)Where the distributor or manufacturer of the vehicle has made available a price list, when determining the declared value under Clause (a), at the beginning of each insurance period the insured shall determine the declared value by applying the following depreciation to the price list provided by the distributor or manufacturer of the vehicle and parts attached thereto for the brand and model of vehicle to be insured under this insurance policy.

(c)Where the distributor or manufacturer of the vehicle has stopped providing a price list, the declared value of the vehicle shall be determined under Clause (a) through mutual agreement between the insured and the insurer at the beginning of each insurance period.

(d)For one insurance period, the declared value determined under Clause (b) or (c) at the beginning of that period shall itself be considered the market value of the vehicle, and no additional depreciation shall be applied in a claim for total loss or Constructive Total Loss occurring during that period.

(e)Where the cost required to repair the vehicle damaged due to any of the causes mentioned in Clause 1 exceeds 75% of the declared value, the vehicle shall be deemed to have suffered Constructive Total Loss.

Where the vehicle suffers Total Loss or Constructive Total Loss due to any of the causes mentioned in Clause 1, the insurer shall pay compensation. No compulsory excess or voluntary excess shall be deducted when making such payment. The value of the salvage shall be determined on the basis of the surveyor's recommendation and the written agreement between the insurer and the insured.

Subject to the maximum liability limit mentioned in the insurance policy, the insurer shall pay expenses arising from liability that may fall upon the insured as a result of an accident caused by the vehicle or its use, in the following circumstances:

(a)Where a third party dies, becomes disabled, or suffers bodily injury;

(b)Where, except for loss/damage to property carried in the insured vehicle or owned by the insured, or property entrusted to, or under the control of, the insured, loss/damage occurs to other third-party property.

The insurer shall pay all expenses for which it has provided written consent.

Subject to the limits and conditions of the liability provided to the insured under this Chapter, the insurer shall also provide compensation for the liability of the driver driving the vehicle, in the following circumstances, based on the insurer's general knowledge or consent:

(a)Where the driver is not entitled to compensation under any other insurance policy;

(b)Where the driver has acted in accordance with the terms, exclusions and conditions applicable under this insurance policy to the extent that they may apply to the insured.

If the insurer considers it necessary, it may appoint a representative to conduct investigation or inquiry regarding any death, disability, bodily injury or property damage in respect of which a claim may arise under this Chapter. It may also take action to defend in court any proceeding arising from or relating to any act or proceeding in respect of which a claim may arise under this Chapter.

In relation to the death, disability or bodily injury of a third party in respect of which a claim may arise under this insurance policy, the insurer shall, subject to the limits and conditions of liability specified in this insurance policy, bear the liability payable by the insured. In the event of the insured's death, such payment shall be made by the insurer to the nearest heir of the deceased. Such heir shall comply with the terms and conditions of this insurance policy in the same manner as the insured.

No provision or restriction of this insurance policy shall adversely affect the right of any person to receive compensation provided under the prevailing laws relating to vehicles and transportation.

Where a vehicle accident occurs, the insurer shall pay compensation as follows:

(a)Where a third party suffers bodily injury or disability, or medical treatment expenses are incurred, the insurer shall, on the basis of the doctor's report and certification by the authorized body or officer, provide compensation per person as follows:

(b)Kurwa Expenses: If a person riding or travelling in the vehicle is injured and admitted to a hospital for treatment, upon certification of such hospitalization, the insurer shall pay kurwa expenses at the rate of Rs. 500 per day, for a maximum period of 45 days, within the limit of medical treatment expenses.

Rs. 500 per day; maximum 45 days

(c)Ambulance Expenses: If, from the accident site or from the initial treatment hospital, it is necessary to take the injured person to another hospital, Rs. 10,000 or the actual expense, whichever is less, shall be paid for the relevant ambulance expenses, and such expense shall remain within the limit of medical treatment expenses.

Rs. 10,000 or actual expense, whichever is less

(d)Funeral Expenses: Whether or not the vehicle was at fault, if a third party dies as a result of an accident in which the vehicle is directly involved, the insurer shall immediately pay Rs. 50,000 per deceased person as funeral expenses, within the overall liability limit of Rs. 500,000 per deceased person.

Rs. 50,000 per deceased person; overall liability limit Rs. 500,000 per deceased person

(e)In Case of Death: Where the fact that a third party died as a result of a vehicle accident is certified by an authorized body or officer according to law, the insurer shall pay Rs. 500,000 per deceased person, including funeral expenses.

Rs. 500,000 per deceased person

ClarificationWhere the insured pays additional insurance premium and requests that the sum insured of the driver, other related employees and passengers be increased, and the insurance policy is issued with the increased sum insured, the insurer shall pay the claim on the basis of the sum insured mentioned in that insurance policy.

Where a vehicle accident occurs, the maximum limit of compensation per accident shall be as follows:

1Motorcycle

Maximum third-party human injury liability: Rs. 2,500,000; Maximum third-party property damage liability: Rs. 2,500,000

Where third-party property is damaged as a result of a vehicle accident, the insurer shall pay compensation subject to the conditions of this insurance policy. No depreciation shall be deducted when making such compensation payment.

Where more than one person or property suffers loss in an accident, the insurer shall pay compensation according to the priority specified by the insured, subject to the liability limit specified in Clause 8 and the conditions and provisions of this insurance policy.

All other exclusions, conditions and limitations mentioned in the insurance policy shall remain unchanged.

Subject to the terms and conditions of this insurance policy, where the person driving the vehicle or one person riding as a Pillion Rider is insured while riding, boarding or getting off the vehicle, and as a result of an accident suffers injury, the insurer shall, where the following loss has occurred within 183 days from the date of such accident, pay compensation to the injured person or, in the event of death, to the nearest heir of the deceased as follows:

Within 183 days from the date of accident

Death

Rs. 500,000

Permanent total disability

Rs. 500,000

Complete loss of sight of both eyes

Rs. 500,000

Loss of both hands at the wrist or both feet at the ankle, or loss of both legs from the knee or above, resulting in physical inability to work

Rs. 500,000

Loss of one hand at the wrist or one foot at the ankle, or loss of one leg from the knee or above, together with complete loss of sight of one eye

Rs. 500,000

Complete loss of sight of one eye

Rs. 250,000

Loss of one hand at the wrist or one foot at the ankle, or loss of one leg from the knee or above, resulting in physical inability to work

Rs. 250,000

Any other disability, based on the extent of physical disability determined by the relevant specialist

Proportionate percentage of the sum insured

Necessary and actual medical treatment expenses arising directly and solely from the vehicle accident

Up to Rs. 300,000

Among the above-mentioned injuries, if more than one injury occurs, the insurer's liability for each person shall not exceed the sum insured specified for that person, and for each injury the amount shall be equal to the proportion of the amount determined for the respective injury.

(a)Kurwa Expenses: If the person driving the vehicle or the person riding in the vehicle is injured and admitted to a hospital for treatment, upon certification of such hospitalization, the insurer shall pay kurwa expenses at the rate of Rs. 500 per day, for a maximum of 45 days, within the limit of medical treatment expenses.

Rs. 500 per day; maximum 45 days

(b)Ambulance Expenses: If it is necessary to take the injured person from the accident site or from the initial treatment hospital to another hospital, Rs. 10,000 or the actual expense, whichever is less, shall be paid for the relevant ambulance expenses, and such expense shall remain within the limit of medical treatment expenses.

Rs. 10,000 or actual expense, whichever is less

(c)Funeral Expenses: If the person driving the vehicle or the person riding in the vehicle dies, the insurer shall immediately pay Rs. 50,000 per deceased person as funeral expenses, within the overall liability limit of Rs. 500,000 per deceased person.

Rs. 50,000 per deceased person; overall liability limit Rs. 500,000 per deceased person

(d)In Case of Death: Where the fact that the person driving the vehicle or the person riding in the vehicle died as a result of the accident is certified by an authorized body or officer according to law, the insurer shall pay a total of Rs. 500,000 per deceased person, including funeral expenses.

Rs. 500,000 per deceased person

ClarificationWhere the insured pays additional insurance premium and requests that the sum insured of the person driving the vehicle or the person riding in the vehicle be increased, and the insurance policy is issued with the increased sum insured, the insurer shall pay the claim on the basis of the sum insured mentioned in that insurance policy.

No compensation shall be paid by the insurer for loss/damage resulting from an accident caused by:

intentionally inflicted injury;

suicide or attempted suicide; or

consumption of alcohol or narcotic substances.

All other exclusions, conditions and limitations mentioned in the insurance policy shall remain unchanged.

ClarificationThe amounts determined as above shall not affect any provision contained in the prevailing law relating to vehicles.

Under this insurance policy, when renewing the insurance policy where no insurance claim has been made, the insurer shall provide the following discount on the renewal insurance premium, excluding risk-group insurance:

Where no claim has been made, the discount shall be according to the scale mentioned in Schedule–20.

Where a claim has been made, the discount shall not become effective as a lump-sum discount. Without counting the year in which the claim was made, when renewing the insurance policy, the discount for no claim shall be maintained according to the number of years in which no claim was made. For the purpose of providing the no-claim discount, the period during which no claim was made shall remain unchanged. After the year in which a claim was made has passed, the no-claim discount shall again begin from the renewal period following the period during which no claim was made.

However, where a claim has been paid because of Total Loss or Constructive Total Loss, the insured shall not receive the above-mentioned discount.

Such discount shall be based not on this insurance policy but on the discount received for no claim having been made under the original insurance policy. Where an insurable interest in one insurance policy is transferred to another insured, such discount shall commence from the date on which the insurable interest under the new insurance policy begins.

Where ownership of a vehicle covered by the previous insurance policy has changed, and within 365 days a vehicle of the same classification is purchased and insured, if it is declared that no accident has occurred, the insurer shall provide the no-claim discount applicable under the previous insurance policy, whether issued by a domestic or foreign insurer, provided that no claim was made within the maximum limit specified in this Directive.

Within 365 days

If the new insured renews the insurance policy within a period of less than 365 days from the date on which the insurable interest was transferred, the discount shall be provided according to Sub-clause (3).

Less than 365 days

If the insured transfers the insurance of his/her vehicle from one insurer to another insurer, the new insurer shall provide the insured with the discount according to the rate of discount received from the previous insurer.

For the purpose of receiving the no-claim discount on a new insurance policy, the insured shall submit the notice issued for renewal or a letter from the previous insurer clearly specifying the percentage of discount received. All insurers shall compulsorily provide the insured with a renewal notice or certificate clearly stating the percentage of discount received for no claim.

If an insurance policy of a vehicle whose insurance period has expired is renewed within 35 days from the date on which the insurance policy is required to be renewed, the no-claim discount shall be applicable if no claim has been made. The rate of discount applicable to the new insurance policy shall be according to the no-claim discount earned under the insurance policy for the previous full year.

Within 35 days

If an insured entitled to a no-claim discount renews the insurance policy for a short period, or, after renewing the insurance policy for twelve months, requests cancellation of that insurance policy during the period, the calculation of the no-claim discount to be given to the insured shall be made on a proportionate basis.

Except where otherwise provided in this Directive, the discount shall be granted only where the insurance is continuous.

Where ownership of a vehicle is transferred by an institution into the name of an employee, such employee shall also be entitled to the no-claim discount, provided that the vehicle is insured with evidence of an agreement between the institution and such employee that the vehicle shall be used only by that employee.

Where, after the death of the insured, the vehicle is transferred into the name of the insured's legal heir, such legal heir shall also be entitled to the discount for no claim having been made.

Even if different vehicles are covered under the schedule of one insurance policy, each vehicle shall be considered as having been separately insured for the purpose of receiving the no-claim discount.

The no-claim discount shall apply only to comprehensive insurance policies.

The insurer shall have no liability under this insurance policy in the following circumstances:

(a)Any accident, loss, damage or liability occurring or taking place outside the geographical area specified in the schedule of this insurance policy;

(b)Any claim arising under any other contract;

(c)Except in the case of theft of the vehicle, any accident, loss, damage or liability occurring or taking place while the vehicle is being driven by a person other than the driver specified in the schedule of this insurance policy;

(d)Any loss or damage caused directly or indirectly by, or arising from, the effect of radioactivity from any nuclear material remaining after the burning of nuclear fuel, including the combustion of the self-sustaining process of nuclear fission.

(e)Any accident, loss/damage or liability arising from, or directly or indirectly connected with, a nuclear weapon, or any cause directly or indirectly connected with such weapon;

(f)Any accident, loss/damage or liability arising directly or indirectly, nearby or remotely, or symbolically, from or in connection with volcanic eruption, foreign enemy action, hostility or warlike action (whether war is declared or not), civil war, military rebellion, military uprising, military rule, or the events mentioned above.

The insurer shall have no liability for consequential loss arising as a result of an accident involving the vehicle insured under this insurance policy.

Unless the insurer has issued an endorsement relating to strike, riot, malicious act and terrorist/subversive acts as an extension of this insurance policy on the basis of payment of the prescribed additional insurance premium by the insured, the insurer shall not bear any accident, loss/damage or liability arising from or occurring due to strike, riot, malicious act or terrorist/subversive act.

A word or phrase having a special meaning in any part of this insurance policy shall have that same meaning wherever it is used.

If any accident or loss/damage occurs which may give rise to a claim under this insurance policy, the insured shall immediately give written notice thereof to the insurer. The insured shall provide the insurer with all necessary information and assistance concerning such accident. All letters, claims, notices, summonses, writs or information relating to the accident shall be transferred to the insurer immediately upon receipt by the insured. If the insured receives any information concerning any suit, investigation, or examination relating to an injury/fatal injury in connection with any matter that may give rise to a claim under this insurance policy, the insured shall immediately notify the insurer in writing.

In relation to any theft or other criminal offense that may give rise to a claim under this insurance policy, the insured shall immediately notify the insurer and the police and shall assist in locating the offender.

No person may, without obtaining the insurer's written consent, make any proposal, promise, payment, or grant any discount concerning any claim under this insurance policy on behalf of the insured. Where the insurer wishes to make payment of a claim on behalf of the insured, settle a dispute, defend a claim, conduct proceedings, or defend or pursue an appeal, the insurer shall remain completely independent in this matter, and the insured shall provide all information and assistance requested by the insurer.

At the insurer's option, the insurer may repair or replace the vehicle, or any part or parts attached to it, or any part thereof, or may pay cash equivalent to the amount of the loss/damage.

The insured shall take all reasonable measures to protect the vehicle from loss/damage and to maintain it in proper condition. The insurer shall always have the right to inspect the vehicle, or any of its parts, or the driver or any employee of the insured. In the event of an accident or damage, the insured shall take all necessary and appropriate care and safety measures to prevent further loss/damage to the vehicle. If the vehicle involved in an accident is operated without necessary repairs being carried out, the insured shall itself be responsible for any additional damage caused to the vehicle as a result.

The insurer may cancel this insurance policy by sending 15 days' registered notice by post to the insured's last address. In such circumstance, the insurer shall refund the proportionate insurance premium for the remaining period from the date on which the insurance policy is cancelled.

15 days

The insurance policy may be cancelled at any time at the request of the insured. In such case, after deducting the amount of premium calculated at the following short-period rates for the period during which the insurance policy remained in force, the insurer shall refund the remaining premium:

However, for the purpose of refunding the insurance premium, there must have been no claim throughout the period for which the insurance policy remained in force.

Where the insured receives payment of a claim for loss/damage/liability covered by this insurance policy from another prevailing insurance policy, the insurer shall not be required to pay compensation or other expenses exceeding the proportionate value based on the sum insured.

Where, in the event of loss/damage to a vehicle, it is found that the insured or any other person has also insured the same vehicle with another insurer, the insurer shall not pay more than the compensation that it is required to pay proportionately on the basis of the sum insured for the loss/damage of that vehicle.

On the date mentioned in the schedule of this insurance policy as the date on which the insurance period ends, this insurance policy shall expire at 12:00 midnight according to local time.

12:00 midnight

The date and time from which the risk under this insurance policy begins shall be as specified in the schedule of the insurance policy.

If the insured provides false information concerning the vehicle when providing the basic details, or conceals any material fact necessary for assessing the risk, or provides false information, or if any material fact is omitted while stating the facts, or if the insured fails to comply with any condition of this insurance policy, the insurer shall not be liable to pay a claim under this insurance policy.

If ownership of the vehicle changes and the new owner does not insure the relevant risk within 35 days from the date of such change of ownership, this insurance policy shall automatically become ineffective.

35 days

However, even if this insurance policy becomes ineffective due to a change in ownership of the vehicle, insurance coverage for the remaining insurance period shall be deemed to remain in force in respect of the motorcycle driver; one Pillion Rider; and liability toward third parties, and the insurer shall pay claims accordingly.

If the insured gives written notice to the insurer within 35 days from the date of selling the vehicle, the insurer may transfer this insurance policy into the name of the new owner of the vehicle as follows:

35 days

(a)For transfer of the insurance policy, the new owner of the vehicle shall fill in the insurance proposal form as soon as possible, and the insurer may issue an endorsement and transfer the insurance policy.

(b)If the insured had received a discount for no claim having been made, the new owner of the vehicle shall not receive such discount.

(c)Notwithstanding anything stated in Clauses (a) and (b), where ownership has automatically been transferred to the heir according to prevailing law, this insurance policy shall be deemed to have been automatically transferred.

Until the insurer has issued a receipt, payment of insurance premium shall not be deemed to have been made.

If the insured or a person authorized by or on behalf of the insured fails to fulfill the necessary procedure or obstructs the exercise of any right under this insurance policy, the insured shall be deprived of all benefits under this insurance policy.

If any claim is fraudulent, or if, in connection with a claim, the insured or any person authorized to act on behalf of the insured gives a false statement, or attempts to obtain any undue benefit under this insurance policy, or if any loss/damage occurs intentionally through collusion between the insured and another person, the insured shall be deprived of all benefits under this insurance policy.

If the insurer rejects a claim for loss/damage under this insurance policy and the insured does not file any complaint within three months, or, after the Insurance Committee makes a decision in favor of the insurer under the Insurance Act, 2049, the insured does not file a complaint/appeal in the court within the period prescribed by prevailing law, the insured shall be deprived of all benefits under this insurance policy.

Three months

If, after receiving compensation under this insurance policy, the insured has the right to obtain compensation for the same loss/damage from any other party, such right to obtain compensation shall be assigned to the insurer. Before or after receiving compensation from the insurer, whenever the insurer considers any action reasonable and necessary, the insured shall undertake such action at the insurer's expense or give permission to the insurer to undertake it.

Except where a claim is in the process of being paid or remains pending, the insurer shall not be liable for any loss/damage occurring more than three months after the date on which the loss/damage occurred.

Three months

Every notice and other correspondence or printed/written document to be given to the insurer under the terms of this insurance policy shall be in writing.

The insured shall be responsible for collecting the evidence necessary to establish any claim made under this insurance policy.

If any dispute arises concerning an insurance claim under this insurance policy, it shall be dealt with according to the Insurance Act, 2049.