SajiloBima
Property insurance

Property insurance prices in Nepal

This is the lowest price allowed: the Nepal Insurance Authority sets it. Insurers can charge more. Pick an insurer to work out the premium for a home, a shop or any other property.

Find the right policy in a few questionsWhat you’re insuring and what it’s used for — then the policy that fits and its price.Answer a few questions

Insurers that sell property insurance

14 insurers

Ranked by every non-life policy each sold in FY 2082/83, not property alone.

The minimum rates

A home

Rs 0.5

per Rs 1,000 insured, up to Rs 1 crore

Above Rs 1 crore, the rate is Rs 1.50 for every Rs 1,000, and it applies to the entire amount, not only the part over Rs 1 crore. Example: a home insured for Rs 1.2 crore pays Rs 18,000 a year before VAT, not Rs 8,000. A House policy covers a home up to Rs 2 crore.

Everything else

Rs 1.5 – 9

per Rs 1,000, set by what the property is used for

  1. Very low risk12 usesRs 1.5
  2. Low risk114 usesRs 2
  3. Medium risk111 usesRs 3
  4. High-medium risk131 usesRs 4.5
  5. Low hazard56 usesRs 5.5
  6. Medium hazard99 usesRs 7.5
  7. High hazard16 usesRs 9
Before you buy

Questions about price

Open a question to see the answer and where it comes from.

Does the price change with where my property is?

Not for a home: the rate is the same everywhere in Nepal, Rs 0.50 a year for every Rs 1,000 insured up to Rs 1 crore.

For businesses, the directive allows prices by location, type of building and use, brought in by the Authority in phases. Until it issues those rates, the same rate applies everywhere.

Source: Directive s.27, s.35

My building is near a highway or a power line. Will it cost more, or will a claim be refused?

The prices here are minimum rates. An insurer can treat a property as a higher risk and charge more.

The policy lists the reasons a claim can be refused, and being near a road or line isn’t one of them. A claim can be refused if the proposal form hid an important fact, or if you didn’t tell the insurer when the risk went up.

If a vehicle hits your building, the policy pays, and the insurer can then recover the money from the vehicle’s side.

Source: Directive s.43, s.44; House wording clauses 3, 10, 15, 23; Property wording clauses 3, 10, 15, 22

Can I get a discount?

Only 5% for buying directly from the insurer, without an agent. No other discount is allowed.

Source: Directive s.25(2), s.46(3)

What do I need to buy a policy?

A filled proposal form with the owner’s details, the address and land plot number, the building’s construction, floors, use and year built, and a value for each kind of property (building, machinery, furniture and fittings, and so on).

If the property is mortgaged, add the bank’s details: the policy is issued in both names, and the bank can be paid a claim directly.

Source: Directive s.9, s.15; Schedules 1 and 2