Insured Perils

NMIC provides compensation for any damage, loss, or harm to the motorcycle or its attached parts, caused by the following:

• Fire, lightning, explosion, or self-ignition of the vehicle or its parts.
• Earthquake.
• Flooding or submersion.
• Landslide or landslip.
• Storm, hail, snow, or typhoon.
• Accidental external causes.
• Mechanical or electrical failure, breakdown, or accident resulting from the use of the vehicle.
• Theft, burglary, or robbery.
• During transit by road, rail, internal waterways, lift, or elevator.

Depreciation of Replacement Parts

Replacement parts made of the following materials will be depreciated as follows:

• All types of rubber, lights, batteries, tires, and tubes: 50%
• Parts made of fiberglass: 30%
• Items made of glass: 10%

General Depreciation Rates

Depreciation rates based on the vehicle’s age from the date of registration in Nepal:

Year	Less than 6 months	6 months to less than 1 year	1 year to less than 2 years	2 years to less than 3 years	3 years to less than 4 years	4 years to less than 5 years	5 years to less than 10 years	10 years or more
Percent	0%	5%	10%	15%	25%	35%	40%	50%

Exclusions

NMIC will not pay for:

• Depreciation due to the use of the vehicle.
• Mechanical or electrical failure, breakdown, or accident not involving the vehicle.
• Damage due to the driver being under the influence of alcohol or drugs.
• Damage occurring more than 35 days after the change or termination of the insured’s interest in the vehicle.