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Insurance in NEPAL
Insurance in NEPAL
BY
SACHIN BISWAL
18382053
Insurance in NEPAL
Introduction
• Cover used for protecting oneself from the risk of a financial
losses.
• Risk is covered in monetary value.
• Involves the Insurer and the Insured.
• Insurer is the insurance company who provides the cover.
• Insured is an individual who takes the insurance policy by
paying a certain premium.
Types of insurance
• Fire Insurance
• Marine Insurance
• Life Insurance
• Others
– Motor Insurance
– Household Insurance
– Engineering Insurance
– Aviation Insurance
Fire Insurance
This policy provides the coverage against loss or damage
caused by Accidental Fire and Lightning. On payment of
additional premium Property Insurance Policy can be extended
to cover the loss or damage caused by other allied perils of fire
e.g. Earthquake, Riot & Strike, Malicious Damage, Terrorism,
Explosion, Storm & Flood, Landslide & Subsidence, Aircraft
& Aerial Damage, Impact Damage by Vehicles & Animals etc.
The properties that can be insured under this insurance are
Office & Residential Building, Factory Building, Plant &
Machinery and contents, various equipment’s, stocks etc.
Marine Insurance
Life insurance
Life insurance is a contract between an insurance policy
holder and an insurer or assurer, where the insurer promises to
pay a designated beneficiary a sum of money in exchange for
a premium, upon the death of an insured person.
Keta-keti jeevan beema. Bal shiksha beema yojna. Surakshit
jeevan beema yojana. Rural endowment plan. Jeevan laxmi -
triple benefit scheme with bonus. Jeevan jyoti. Jeevan unnati
plan. Naulo dhanbarsha plan. Naulo jeevan sambriddhi.
Jeevan sahara. Sadabahar jiwan bima. Smart life insurance.
These are some of the life insurance in NEPAL.
Insurance Companies
• LIC Nepal
• Prime Life Insurance
• Asian Life Insurance
LIC Nepal
• A joint venture between Life Insurance Corporation of India
(55%) and Vishal Group of Nepal (25%), the insurance
company has public participation to the extent of 20%.
• Life insurance Corporation (Nepal) Ltd. is instituted under the
Companies Act 2053, 27.12.2000 and has Registration
No: 765-057/58
• It has total authorized capital of Rs 25 crores and has 11,224
shareholders.
• The services provided by the LIC are:-
– ACCEPTANCE OF PREMIUM
– CANCELLATIONS AND SURRENDERS
– CHANGE OF MODE OF PAYMENTS
– NOMINATIONS
– POLICY LOANS
– REVIVAL OF LAPSED POLICY
Problems faced by LIC Nepal
• Problems in the field of:
– Insurance Committee
– Customer
– Agents
• 1% of whatever collection of money or income they make
has to be submitted to insurance committee.
• Among the whole population of Nepal, only 5% to 6% are
covered by insurance.
• Very few people are aware of this field.
Conclusion
• Uncooperative environment.
• Lack of unstable government and policies.
• Lack of loyalty and sincerity.
• Less collaboration with bank and financial institutions for
the promotion
of insurance company
• Problem of capital/income generation.