KATHMANDU: Motor insurance remained the largest revenue source for Nepal’s non-life insurers in FY 2082/83, accounting for Rs 15.49 billion, or 29.82%, of the sector’s total premium income of Rs 51.92 billion, according to the Nepal Insurance Authority.

Industry experts attribute the dominance of motor insurance to mandatory third-party coverage, rising vehicle ownership, strong loan-financed vehicle purchases, and high policy renewal rates. The steady premium inflow has made motor insurance a key driver of insurers’ cash flow and business growth, although analysts caution that excessive reliance on the segment could increase claim risks as road accidents rise.