FACTORS INFLUENCING DEMAND FOR MOTOR VEHICLE INSURANCE IN NEPAL

Abstract

This research looked into the call for the factors influencing demand for motor vehicle insurance in Nepal based on three independent variables consisting of motor vehicle sales, length of road and number of road accidents and dependent variable motor insurance premium. Sample consisted of Shikhar Insurance Company Limited, Prabhu Insurance Company Limited and Siddartha Insurance Company Limited out of 14 non-life insurance companie. Convenient sampling technique was used. The descriptive and historical research design has been used and Microsoft Excel was employed in order to analyze the data on correlation and regression method. Data were secondary and obtained from data provided by Nepal Insurance Authority, Department of Transport Management, Department of Road, Traffic Nepal Police, Financial Statistics, Annual Report of the selected companies, and Quarterly Reports. The finding of the research concluded that there is significant relationship between motor vehicle sales, length of road and number of road accidents with the motor insurance premium. Additionally, the data indicated a considerable negative link between motor vehicle sales and motor insurance premiums. The length of the road and motor vehicle claims were found to have a significant, moderately positive connection. The amount of road and the number of car claims experienced had a somewhat negative association. There was a somewhat negative link found between the number of traffic accidents and auto insurance premiums. There was little link between the number of auto accidents and motor vehicle claims. On the other hand, substantial and significant association was found between the number of traffic accidents and the number of vehicle claims. On the other hand, the length of the road and the frequency of accidents showed a moderately negative link. Therefore, in order to effectively serve consumers' needs, it is advised that the company focus on site, branch network, efficient service delivery, ease of account opening, hassle-free and quick claim handling procedures, and infrastructure development.Due to the improved present procedures and assistance with policy formation, this would also be important for the insurance sector's growth and profitability. Students interested in learning about insurance businesses, the demand for auto insurance, and the impact of various factors on premium collecting for auto insurance would also find this study to be beneficial. Taken as a whole, xii this study offers insightful data that is essential for non-life insurance company management, investors, and the public, and connected parties. Keywords: Motor vehicle insurance, Insurance policy, Motor vehicle sales, length of road accidents and number of road accident