Motor insurance price at NECO Insurance
Third party has one fixed price; comprehensive is a rate applied to what your vehicle is worth. Both come from the Nepal Insurance Authority’s tariff, so they are the same at every insurer.
Third party
Rs 1,705
a year for a motorcycle, under 150cc
Compulsory, and the whole price — tariff, VAT and stamp duty included. Nothing about your vehicle’s value changes it.
Comprehensive
1.5%
of your vehicle’s value
Not a price until you say what the vehicle is worth. The rate is applied to that value, the Rs 1,500 third-party premium is added, any no-claim discount comes off, and VAT and stamp duty go on top — built step by step below.
The tariff sets the price, not the insurer.
The Nepal Insurance Authority sets motor premiums by tariff. Third party costs the same at every insurer; comprehensive is worked out from the same tariff rates, so ask an insurer whether it adds or takes off anything of its own. Where insurers really differ is in how they settle a claim.
How your premium is built
Each row is a rate set by the tariff. Tell us about your vehicle and the rates turn into rupees.
Add the registration month to take off the share for the vehicle’s age. Until then the list price is used.
| Operation | Step | What the tariff sets | Your premium |
|---|---|---|---|
| Your vehicle’s valueList price; add the registration month for its age | List price; add the registration month for its age | Rs 2,50,000 | |
| Own-damage rate1.5% of your vehicle’s value | 1.5% of your vehicle’s value | Rs 3,750 | |
| Third-party premiumRs 1,500 for this size | Rs 1,500 for this size | Rs 1,500 | |
| VAT13% of the premium | 13% of the premium | Rs 683 | |
| Stamp dutyFixed | Fixed | Rs 20 | |
| Comprehensive premium, a year | Rs 5,953 | ||
Steps not part of this estimate are folded at the end of the table — excess, add-ons and the direct-purchase discount are agreed with the insurer when you buy.
Separately, every comprehensive claim starts with a compulsory excess you pay yourself: Rs 500 under 5 years, Rs 500 5 to 10 years, Rs 500 over 10 years.
What each one pays for
The extra money buys your own vehicle back. Everything else is the same on both.
| Pays for | Third party | Comprehensive |
|---|---|---|
| Injury or death of other people | Yes | Yes |
| Damage to other people’s property | Yes | Yes |
| Accident damage to your own vehicle | No | Yes |
| Fire, theft and explosion | No | Yes |
| Flood, landslide, earthquake and storm | No | Yes |
The fixed price for every motorcycle
Set by the tariff for each size, and identical at every insurer.
| Engine size | Tariff | VAT | Stamp duty | You pay a year |
|---|---|---|---|---|
| Rs 1,500 | Rs 195 | Rs 10 | Rs 1,705 | |
| Rs 1,700 | Rs 221 | Rs 10 | Rs 1,931 | |
| Rs 1,900 | Rs 247 | Rs 10 | Rs 2,157 |
“You pay” is the tariff, VAT and stamp duty. Third party costs the same at every insurer.
Source: the Nepal Insurance Authority’s motor tariff directive, in force since 16 July 2016.