A third party risk policy is a mandatory insurance policy that covers the vehicle owners against risks. The scope of the cover of the third party insurance is to pay compensation for the damage caused to the property of the third party and death due to bodily injuries to the third parties. This does not include damage of your own vehicle.

Your motor insurance policy cover remains in force for 12 months from the date of commencement (or as otherwise shown on your policy schedule).

It sometimes makes sense not to make small claims. Ideally, whenever your vehicle is damaged, get an estimate for the repairs. If the No Claim Bonus you stand to forfeit in the forthcoming year exceeds the estimate, it makes sense not to raise a claim and instead pay for the damage yourself. For example, if your vehicle met with an accident on the 1st year itself and the estimate comes to Rs.2000, you should not make a claim as it is less than the NCB you will bear in the corresponding year which is Rs.2251 (Rs.11257- Rs.9006).

Liability follows the vehicle. So, the insurance on the vehicle will apply even in the case of it being driven by some other person with your permission. Usually, the liability insurance of the person driving the vehicle will have to pay in the case the amount of the loss exhausts your policy’s limits.

A vehicle insured under a policy can be substituted by another vehicle of the same class for the balance period of the policy subject to adjustment of premium, if any, on pro-rata basis from the date of substitution. Inform your insurance company that you are changing your car or two wheeler. Ask them how it is going to affect your premiums.

If you sell your car or two wheeler to another person, the insurance can be transferred in the name of the buyer. The buyer (transferee) has to apply for transfer of insurance with the insurance company, within 14 days from the date of transfer of the car in his name and after making the payment of endorsement premium for the remaining period of the policy.

NCB is the short form of No Claim Bonus; it is rewarded to the owner of the vehicle who is also the policy holder for No Claim / Claims in the previous policy year. It can be accumulated over a period of time. If you have NCB you can avail a discount ranging from 20-50% on the Own Damage Premium (policy holder’s vehicle).

There are two types of insurance in the market, namely

• Life Insurance and
• Non-Life or General Insurance.

Life Insurance provides cover for human and human related things.

Sagarmatha Insurance Company issues Non-Life Insurance only.

Non-Life or General Insurance provides insurance cover for things that are not covered by Life Insurance, for example, cover for house, warehouse, industry, vehicle etc. However, Personal Accident, Personal Medical, Third Party Liability, Production Liability, Travel/Trip are also covered in Non-Life Insurance. The nature of Non-Life insurance cover is normally short term, such as one year.

The purpose of proposal form is to get information from the insured to issue insurance policy. The information is as followed:

• Name & Address of proposer
• Details about the proposed properties, persons, liabilities etc
• Location, Transit route etc. of proposed
• Property, profession age etc. of proposed person
• Nature of business for liabilities
• Proposed Value
• Limit of liabilities
• Sum Insured etc. for the insurance
• Risks required
• Period of insurance
• Past insurance and claim record

For Motor Vehicle Insurance, photocopy of the vehicle registration book (Blue Book) and Renewal Notice from the previous Insurance Co. for “No Claim Discount”;

For Marine Transit Insurance, Invoice / Performa Invoice, Packing list, Letter of Credit (L/C) etc.;

For Contractors All Risk Insurance, Contract Document, Bill of Quantity (BOQ);

For Travel Medical Insurance, Copy of Passport and for other insurance, as required by the Insurance Company

You can report a claim to our Toll Free No.: 1660-01-66-666, we are available around the clock. You can also visit our claims section for or contact information, or visit one of our branches. We will take your details and try our best to settle the claim as soon as possible.

The insurance policy holder should check the “Policy Schedule” for the confirmation of insured name, policy period, property/person/liability insured, risks covered, premium, special exclusions etc and “Policy” for terms, conditions, exclusions, warranties, limitations etc. The insurance policy holder should also check the premium calculation.

A deductible is the amount you’re responsible for in the event of a covered loss. In most covered loss cases, you are responsible for any amounts up to your deductible level and your insurance would cover anything beyond that up to your coverage limit.