KATHMANDU: Nepal Insurance Authority is preparing a separate insurance policy for electric vehicles (EVs) as rising repair costs and expensive spare parts have exposed shortcomings in the existing motor insurance framework.

The regulator said the new policy aims to improve risk assessment, damage valuation and claims settlement for EVs.

Industry stakeholders also called for a dedicated insurance framework, citing higher claim costs, limited repair facilities, rapid battery depreciation and the need for better policies on EV parts, battery management and driver training