Insurance Regulation, 2049 (1993) : Chapter - 1 Preliminary 1. Short Title and Commencement
Insurance Regulation, 2049 (1993) : Chapter - 1 Preliminary 1. Short Title and Commencement
Insurance Regulation, 2049 (1993) : Chapter - 1 Preliminary 1. Short Title and Commencement
In exercise of the power conferred by section 47 of the Insurance Act, 2049, Nepal
Government has made the following Rules.
Chapter - 1
Preliminary
2. Definitions :
Unless the subject or context otherwise requires, in this Regulation :
(a) "Act" means the Insurance Act, 2049,
(b) "Certificate" means an Insurer Registration Certificate provided to an Insurer for
operating the Insurance Business by registering him as an Insurer pursuant to Rule 8,
(c) "Premium" means the Insurance Premium to be collected by the Insurer from the
insured in consideration of the Insurance Business,
(d) "Advisory Committee" means the Insurance Tariff Advisory Committee constituted
pursuant to section 41 of the Act.
Chapter - 2
Categories of Insurance Business
5. Non-Life Insurance :
(1) The Insurer may operate the following Insurance Business under the Non-Life Insurance
Business :
(a) Fire Insurance,
(b) Motor Insurance,
(c) Marine Insurance,
(d) Engineering and Contractor's Risk Insurance,
(e) Aviation Insurance,
#
(f) Miscellaneous Insurance.
(2) Notwithstanding anything contained in sub-rule (1), the Board may prescribe other
categories of Non-Life Insurance Business as required.
(3) The conditions and privileges of the Non-Life Insurance Policy to be executed pursuant to
this rule shall be as specified by the Board.
6. Re-insurance Business :
(1) The Insurer may re-insure the risks which are in excess from the risks assumed by it.
(2) The Categories of Re-insurance Business to be made pursuant to sub-rule (1) and other
arrangement shall be as specified by the Board.
Chapter – 3
Provisions Relating to the Insurer
(1) "Complete Ban" means a ban imposed on the total transactions relating to the
Insurance Business to be operated by the Insurer.
(2)"Partial Ban" means a ban imposed on any one or more than one transactions out of the
total transactions relating to the Insurance Business to be operated by the Insurer.
Clarification :
(1) "Schedule - 5" includes part "A", "B", "C", "D", "E", "F", "G", "H", "I", "J", "K",
"L", "M" and "N", of the Schedule - 5.
#
Inserted by 1st amendment
#
Inserted by 1st amendment
(2) The Insurer shall submit the complete details of its assets and liabilities to the office of
the Board in the format of Schedule - 6 within six months after the expiry of each fiscal
year.
(d) An amount of one hundred fifteen percent of the remaining amounts of the payment
against the claim made by the Insurer before the expiry of each fiscal year.
15A. The Insurer Operating the Life Insurance and Non-Life Insurance shall Operate
Insurance Business in the Form of Separate Organization :
(1) The Insurer registered to operate the Life Insurance and Non-Life Insurance Business and
has been operating the Life Insurance and Non-Life Insurance Business before the
commencement of this Rule shall operate Life Insurance and Non-Life Insurance
Business in the form of separate organizations from the date as specified by the Board.
(2) The Insurer operating the Life Insurance and Non-Life Insurance Business in the form of
separate organizations pursuant to sub-rule (1) shall comply with the terms and conditions
as follows :
(a) To manage to operate only one Insurance Business between the two Insurance
Businesses being operated by amending in the Memorandum and Articles of
Association and to establish another organization to operate the another Insurance
Business under the prevailing law,
(b) To have separate management for the separate organization operating separate
Insurance Business pursuant to Clause (a),
(c) To manage the collection of paid-up capital separately for each organization,
(d) To comply with the terms and conditions specified by the Board relating to the
operation of the Life Insurance and Non-Life Insurance Business separately.
(3) The Insurer shall establish a separate Insurance fund in the name of an organization
operating Life Insurance Business for the amount of Life Insurance and in the name of an
organization operating Non-Life Insurance Business for the amount of Non-Life Insurance
and shall deposit the amounts in the separate funds out of the amounts deposited in the
Insurance fund pursuant to section 21 of the Act while operating the Life Insurance and
Non-Life Insurance Business in the form of separate organizations pursuant to sub-rule (1)
and (2).
16. Management Expenses of the Insurer :
The Insurer may spend up to twenty-five percent in the case of Marine Insurance and up to
thirty percent in the case of other Insurance for the management functions out of the total
amount of the income generated from the premium while operating the Insurance Business.
Provided that, the amount spent for the establishment and mechanization of the Insurance
office shall not be included in the management expenses.
Chapter-4
Provisions Relating to the Insurance Agent
$
22A .....................
$22A ..................... µ
(2) Notwithstanding anything contained elsewhere in this Regulation, the Insurer may provide
incentive bonus to the Insurance Agent in addition to the commission amount mentioned in
sub-rule (1).
Amended by 2st Amendment
$
Inserted by 2nd Amendment
Deleted by the Order of the Court
24. Commission to be Received for the Period of Work :
Although the license of an Insurance Agent is cancelled due to failure to renew it pursuant
to Section 33 of the Act, the Insurer shall provide the commission amount to be received by
him pursuant to Rule 23 if he has done any work relating to the Insurance Business before
the period during which he has failed to renew his license.
Chapter –5
Provisions Relating to the Surveyor
Amended by 2st Amendment
#
Inserted by 1st amendment
Deleted by 1st amendment
*
Amended by 1st amendment
$
Inserted by 2nd Amendment
(2) An applicant having possessed the qualification as referred to in clause (a) or (b) or (c) or
(d) of sub-rule (1) shall, prior to obtaining the Surveyor's License, have obtained a
certificate indicating his participation in, and completion of, the surveyor training
conducted by the Board.
#
28A. Classification of the Surveyor :
The Surveyors who have been working as Surveyors after having obtained the Surveyor's
license and completed the following period shall be classified as follows and provided with
the Surveyor's License, after the commencement of this Regulation :-
(a) A Surveyor who has regularly worked as a Surveyor for a period more than fifteen years,
Class "A",
(b) A Surveyor who has regularly worked as a Surveyor for a period from ten to fifteen years,
Class "B",
(c) A Surveyor who has regularly worked as a Surveyor for a period From five to ten years,
Class "C",
(d) A Surveyor who has regularly worked as a Surveyor for a period of five years, Class "D".
#
Inserted by 1st amendment
Amended by 2st Amendment
$
Inserted by 2nd Amendment
#
Chapter – 5A
Provisions Relating to the Broker
(b) The authorized capital of the corporate body shall be as specified by the Board,
Provided that, the Board shall determine the authorized capital by making a definite guide
line,
(c) Twenty five percent of the authorized capital of the corporate body shall be deposited in the
fixed deposit account of any commercial bank,
(d) The person working in the capacity of the General Manager of the corporate body shall
have a fifteen year's experience regarding the Insurance Business,
(e) Shall have to fulfill the other conditions as specified by the Board.
#
Inserted by 1st amendment
#
30E. Restriction May be Made to Provide the Broker's License :
Notwithstanding anything contained in this Regulation, the Board may make restriction
by refusing to provide the Broker's License to any person for the particular period to deal
as an intermediary between an Insurer and Insurer on the basis of the report relating to the
study, research and evaluation of the Insurance Business market.
Chapter – 6
Provisions Relating to Payment Against
Insurance Claim
#
Inserted by 1st amendment
Deleted by 1st amendment
$
33A. Payment of Interest in Compensation :
The amount of compensation as referred to in sub-section (6) of Section 17 of the Act
shall carry interest at the rate not less than the prevailing interest rate to be provided by
commercial banks for the fixed account.
Chapter –7
Miscellaneous
36. Approval to be taken to Deal According to Valuation of the Life Insurance Business
Submitted by the Actuary :
The report of the valuation of Life Insurance Business within the Kingdom of Nepal made
by an Actuary shall be submitted to the Board, and the approval of the Board shall be taken
for making arrangement according to the valuation report.
#
36A. Certificate to be Provide to the Insured of the Vehicle Accident Insurance :
The Insurer shall provide a Certificate of Insurance to the Insured who has done a
Vehicle Accident Insurance in the format of Schedule -21
$
Inserted by 2nd Amendment
#
Inserted by 1st amendment
*
Amended by 1st amendment
Broker shall submit an application to the office of the Board in the format prescribed in
Schedule -16 along with one hundred Rupees for the duplicate of such Certificate or
License.
(2) On receipt of the application for the duplicate pursuant to sub-rule (1), the Board shall
provide the duplicate of such Certificate or License to the concerned applicant.
40. Repeal :
The Insurance Regulations, 2026 is hereby repealed.
Schedule - 1
The Chairman,
Insurance Board,
I hereby apply mentioning the following details along with the fee of Rs. 50,000/-
pursuant to sub-section (2) of Section 10 of the Insurance Act, 2049 and sub-rule (1) of Rule 7
of the Insurance Regulation, 2049 for the registration of my name as an Insurer and to obtain
the certificate.
9. Others Details :
Applicants,
Signature :
Name:
Address :
Date :
Schedule - 2
Fiscal year :
Insurer's Certificate
Mr. .........................
...........................
This certificate is hereby issued to you pursuant to sub-section (3) of Section 10 of the
Insurance Act, 2049 and sub-rule (1) of rule 8 of the Insurance Regulations, 2049 by
registering as an Insurer to operate the Insurance Business mentioned as follows :-
3. Other matter :-
(a)
(b)
Seal of the office :- Certificate issuing Authority's,
Signature :-
Name :-
Designation :-
Date :-
The Chairman,
Insurance Board,
As the term of the Insurer's Certificate obtained by me from that Board on ......................... is
going to expire on ..............., I hereby request you to renew the Certificate enclosing the
renewal fee payable pursuant to sub-rule (1) of Rule 9 of the Insurance Regulation, 2049.
Applicant's,
Signature :
Name :
Address :
Date :
1. Date of incorporation :-
5. Has there been any amendment or not in the fundamental features of the corporate body
after the latest annual details ? If yes, please mention:
(a) Citizen :-
(b) Non-citizen :-
7. Has there been any change or not in the agreement done with the Re-insurer regarding to the
Re-insurance ?
5. Difference in percentage
9. Ratio
10. Claims paid during the
period of previous two
fiscal years.
11. Claims not paid during
the period of previous
two fiscal years
12. Surplus or Deficit
13. Ratio
17. Ratio
18. Claims paid during the
current fiscal year
19. Claims not paid during
the current fiscal year
21. Ratio
Schedule -5 Part "C"
(Relating to sub-rule (1) of Rule 14)
Details of the Provision Made for the Outstanding Claims at the End of the Previous Fiscal Year
*
Category of the Insurance The total of the net provision made for the outstanding claims Net provision set aside for I.B.N.R.
1. Life, Fire, Marine, Motor, Net The net amount Net provision set Surplus or At the end Net amount paid Net provision set Surplus or
Aviation and Contract Risk provision at paid during the aside at the end of Deficit of the during the current aside for the Deficit
Insurance and Engineering the end of current fiscal year current fiscal year for previous fiscal year for the previous fiscal (5-6-7)
Insurance the previous for claims of the the claims made for (1-2-3) fiscal year previous fiscal years
fiscal year previous fiscal the previous fiscal year
2. Under Miscellaneous Insurance (to year year
be specified separately) 1 2 3 4 5 6 7 8
1. Life :
(a) Individual
(b) commercial
(c) Total
2. Fire :
(a) Individual
(b) commercial
(c) Total
3. Marine :
(a) Individual
(b) commercial
(c) Total
4. Aviation :
5. Motor Car-Third party :
(a) Motor Car and passengers
personal accident
(b) Other (Specify)
6. Contractor's Risk and Engineering
7. Miscellaneous
(Specify, Separately)
*
Amended by 1st amendment
Schedule -5 Part "D"
(Relating to sub-rule (1) of Rule 14)
Insurance Premiums and details of the claim
Name of the Insurer :
Category of the Insurance Insurance Premium (less Insurance Premium Refunded) Claim to be made (less salvage and other expenses)
Life, Fire, Marine, Motor Net Insurance The Insurance The Insurance (1+2-3) The outstanding The outstanding (4+5-6) Total amount of amount of claim in amount of (8+9+10)
Aviation and Contractor Risk Premium Premium Premium paid for Net Insurance Insurance Insurance Net Insurance claim to the consideration of the claim in The net
Insurance and Engineering income before earned from the reinsurance Premium Premium at the Premium at the Premium receipt insurer re-insurer received from claim
Insurance and under the reinsurance the re- beginning of the end of the fiscal the re- before
Miscellaneous Insurance insurance fiscal year year insurance 8+9-10
(specify separately) (1) (2) (3) (4) (6) (7)
(5) (8) (9) (10) (11)
1. Life
(a)Individual
(b) Commercial
Total
2. Fire
(a) Individual
(b) Commercial
Total
3. Marine
(a) Individual
(b) Commercial
Total
4. Aviation
5. Motor Car-Third Party
(a) Motor Car and passengers
Personal accident
(b) specify other
6. Contractor's Risk and
Engineering
7. Miscellaneous (specify
separately)
(a)
(b)
(c)
Schedule - 5 Part "E"
Category of Insurance Re-Insurance Premium paid for the re-insurance ceded The amount of claims borne by the re-insurance
quota Share Surplus Excess of Facultative Total quota Share Surplus Excess of Facultative Total
Loss Loss
1. Fire
2. Marine
3. Motor
4. Aviation
5. Contractor's risk
and Engineering
6. Miscellaneous
(Specify)
(a)
(b)
(c)
Total
Schedule - 5 Part "F"
Category of Insurance Re-Insurance Premium paid for the re-insurance ceded The amount of claims borne by the re-insurance
quota Share Surplus Excess of Facultative Total quota Share Surplus Excess of Facultative Total
Loss Loss
1. Fire
2. Marine
3. Motor
4. Aviation
6. Miscellaneous
(Specify)
(a)
(b)
(c)
Total
Schedule - 5 Part "G"
(Relating to sub-rule (1) of Rule 14)
Re-Insurance Provided to the Insurer Registered in the Kingdom of Nepal
Name of the Insurer :-
Name of the Re-Insurer Insurance Premium paid Commission Received Claims Recovery
1
2
3
Schedule - 5 Part "H"
(Relating to sub-rule (1) of Rule 14)
Re-Insurance Provided to the Foreign Re-Insurer
Name of the Insurer :-
Name of the Re-Insurer Insurance Premium paid Commission Received Claims Recovery
1
2
3
Total Total
Schedule - 5 Part "M"
Expenditure Income
Claims under the Insurance Policies Premium Less Re-insurance Premium
Less Re-insurance First
Renewal
Death claims paid
Term expiry claims paid Annuity less Re-insurance Commission on
Estimated liability for the approved or Re-insurance
intimated death and term expiry claims
at the end of the fiscal year Interest on Investment and Loans
Un-recoverable loans
Other expenses (details to be
mentioned)
Net surplus transferred to the Life
Insurance
Profit transferred : on the profit and loss
account
Total Total
Schedule - 5 Part "N"
Fixed assets
Investment
Current Assets
Liabilities
Insurance Fund
Notes :
1. stationery goods, printing materials or other waste commodities shall not be included in the
current assets.
2. In case of outstanding Premium, other outstanding Premium other than those recognized by
the Act shall not to be included.
3. The reserve established to perform any special liability shall be included in the liabilities.
4. The method and criteria of the valuation of the assets shall be specified by the Remarks.
5. A foreign company may not include its assets and liabilities outside Nepal.
Schedule - 7
The Chairman,
Photograph
Insurance Board,
#
Inserted by 1st amendment
Schedule - 9
License No.
Photo
Mr. ..........................................
graph
...........................................
As the term of the License of the Insurance Agent obtained by me from that Board
on.................is going to expiry on ............., I hereby request to renew the License including the
fee payable pursuant to sub-rule (1) of Rule 22 of the Insurance Regulation, 2049 along with the
recommendation of the concerned Insurer.
Applicant's
Signature :-
Name :-
Address :-
Date :-
Schedule-11
(Relating to Clause (a) of sub-rule (1) of Rule 23)
Table of the commission Amount to be obtained by the
Insurance Agent
Endowment Life
15 to 19 years 25 20 15 15 5
and marriage
Insurance)
10 to 14 years 15 15 15 15 5
8 to 9 years 10 10 10 10 5
5 to 7 years 10 10 5 5 5
25 years or more 25 25 25 20 5
Insurance to be made
by paying Insurance
following years
(b)Whole Life-
20 to 24 years 25 20 15 15 5
premium for
15 to 19 years 15 15 15 15 5
10 to 14 years 10 10 10 10 5
5 to 9 years 10 10 5 5 5
(i) Level - 10 - 5 5
Insura
Term
Life
nce
(c)
(ii) Diminishing - 5 - - -
Schedule-12
(Relating to the Rule 26
Application for the Surveyor's License
Photo
The Chairman, graph
Insurance Board.
I am hereby applying for the License to work as............... #class surveyor pursuant to sub-section
(1) of Section 30 of the Insurance Act, 2049, along with the following details :-
1. Name and address of the Surveyor :–
2. Occupation :-
3. Qualification :-
4. Brief details of works done as a Surveyor previously if any :-
5. Details about revocation of appointment, if such action has been taken previously by any
Insurer :-
6. Other matters :-
Applicant's
Signature :
Name :-
Address :-
Date :-
Schedule - 13
(Relating to sub-rule (1) of Rule 27)
Registration - Book of the Surveyor
Fiscal Year :
# Class of the Surveyor :-
Reg.No. Name, Surname and full address of Working area of the Remarks
the Surveyor Surveyor
#
Inserted by 1st amendment
Schedule - 14
...........................................
This License #of............class is hereby provided to you to work as a Surveyor pursuant to sub-
section (2) of Section 30 of the Insurance Act, 2049 and sub-rule (2) of Rule 27 of the Insurance
Regulation, 2049.
License Issuer's,
Signature :-
Name :-
Designation :-
Date :-
#
Inserted by 1st amendment
Schedule -15
The Chairman,
Insurance Board.
As the term of the License of # ..........class of surveyor obtained by me from that Board
on.................is going to expire on .............So, I hereby request to renew the License including
the fee payable pursuant to sub-rule (1) of Rule 29 of the Insurance Regulation, 2049 along with
the recommendation of the concerned Insurer.
Applicant's,
Signature :-
Name :-
Address :-
Date :-
Schedule -16
The Chairman,
Insurance Board.
Applicant's,
Signature :-
Name :-
Address :-
Date :-
#
Inserted by 1st amendment
Schedule-17
The Chairman,
Insurance Board.
I am hereby applying to register the name as a Broker and to get the Certificate pursuant to sub-
section (1) of Section 30B of the Insurance Act, 2049 and Rule 30A of the Insurance Regulation,
2049 including the fee of twenty five thousand Rupees stating the following details.
a) Zone :- b) District :-
c) Town/Village :- d) Telephone :-
3. Authorized capital :-
4. Name and address of the head office and branch offices within the Kingdom of Nepal:-
5. Name and address of the General Manager :-
6. Name and address of the auditor:-
7. Number of the employees :-
a) Nepali citizen :-
b) Non-Nepali citizen :-
8. the duplicate copy of the certificate, of the corporate body has been registered :-
9. Other terms and conditions specified by the Board :-
Applicant's,
Signature :
Name :-
Address :-
Date :-
#
Schedule - 18
Fiscal Year :
Reg.No. Name, Surname and full address of Working area of the Remarks
the Broker Broker
#Schedule - 19
(Relating to sub-rule (2) of Rule 30B.)
Broker's License
Mr. ..........................................
...........................................
This Broker's License is hereby provided to you by registering as a Broker pursuant to sub-
section (2) of Section 30B of the Insurance Act, 2049 and sub-rule (2) of Rule 30B of the
Insurance Regulation, 2049.
License Issuer's,
Signature :-
Name :-
Designation :-
Date :-
#
Inserted by 1st amendment
Details of the renewal
#
Schedule -20
The Chairman,
Insurance Board.
As the term of the License of the Broker's License obtained by me from that Board
on.................is going to expire on .............So, I hereby request to renew the License including
the fee payable pursuant to sub-rule (1) of Rule 30D of the Insurance Regulation, 2049 along
with the following documents.
Attached documents
(1) The documents relating to the amendment of the Memorandum and Articles of
Association.
Applicant's,
Signature :-
Name :-
Address :-
Date :-
#
Inserted by 1st amendment
#
Schedule-21
Certificate No.
Category Regd. No. and Chassis No. Engine No. Weight Carrying
date capacity and number
of seat
#
Inserted by 1st amendment