Motor insurance, or vehicle insurance, provides financial protection against physical damage or bodily injury resulting from vehicle accidents. In Nepal, it’s required by law for all vehicles on the road to have at least third-party liability insurance, covering damages or injuries to third parties caused by the insured vehicle. Additionally, vehicle owners can choose comprehensive insurance, which covers damages to the insured vehicle from accidents, theft, fire, natural disasters, and other perils. Although not mandatory, comprehensive insurance offers more extensive protection. Premiums for motor insurance in Nepal depend on factors such as vehicle type, age, insured declared value (IDV), and chosen coverage.