DEFINITIONS & HISTORY

What is life Insurance?

Life Insurance is transfer of a risk to the insurer. The risk assumed by the insurer is the risk of death of the insured. It is contract between Insured and Insurer to compensate financial based on sum assured and premium paid there in.

History of life and general insurance in Nepal

History of general insurance in Nepal goes back to B.S.2005(1948 A.D.). Right from 1950 A.D.,a number of companies started their operation in General insurance. Presently 15 companies are transacting general insurance business. But start and growth of life insurance has been very slow.

Life Insurance Corporation of India started life insurance business in Nepal but its function was mostly confined to Kathmandu city.

LIC stopped its operation in 1972 A.D. Life insurance business was taken over by Rashtriya Beema Sansthan in B.S.2029 after its incorporation on B.S. 2024/09/01 (16-12-1967 A.D.) and by National life and General Insurance Company in B.S.2045(1989A.D.) after its incorporation on B.S.2043/02/19 (2-6-1986)A.D.

The insurance activities were regulated by Insurance Act 2026(1969). The Act and the regulations were modified and new Insurance Act and Regulations were enacted in 2049(1992). Beema Samiti observes and regulates the insurance activities in Nepal as per the provisions of Insurance Act 2049 and Insurance regulations 2049.

Even though the performance of RBS has been impressive, the reach and density of insurance has been very low even in comparison with the insurance density in developing nations.

What if the agent doesn’t deposit premium in the company that one has paid him? Who will be the responsible in such case?

Agent will be personally responsible for money received; no one else will be responsible.

Shall insured bear the loss from sum assured, if company goes into loss?

<p>No, insured do not have to bear any responsibilities toward the loss of the company.</p>

Will the premium paid refunded if policy discontinued?

Premium will not be refunded. However if the policy had run for minimum of two years some surrender value could be received.

Whom can one select as nominee to be beneficiary on one policy?

Any close relative or any one insurer chooses.

POLICY RELATED

What are the different types of life insurance available with the company?

Endowment, Anticipated, Mortgage, Whole life insurance, Mortgage Redemption etc

What is eligible age to apply for life insurance?

Immediately after birth but risk cover will only start after eight years of age.

What is the difference in purchasing policy from the company or from the agent?

It is advised to all concerned to buy insurance policy from agent one can also buy the policy from the company but the individual service provided by the agent will not be there.

Can one change purchased policy?

Policy once purchased can not be changed. However some clauses like mode of premium payment, nominees are changeable.

Can sum assured added or deducted in future?

No, sum assured of a policy could not be added or deducted.

What is bonus? How is it paid?

Profit earned by insurer in the process of running insurance company is bonus. It is paid in the event of death of policy holder or maturity of policy, whichever occurs first.

Will the insured receive medical expenses incase of an accident?

No life insurance policy covers only death risk no any medical benefit is given.

What is the provision for lost policy?

Policy document/ policy paper are very important legal agreement associated with the insurance contract. Therefore, serious safety is required to preserve the policy. But, if lost due to some reason one must immediately apply for duplicate copy. However necessary official procedure has to be completed and some official charge has to be paid.

PREMIUM RELATED

What if one is unable to pay premium to continue the policy?

Stop the contract or surrender the policy; provided two yearly premiums are paid.

In what interval can I pay premium?

 

Premiums can be deposited either directly by cash or in various bank accounts provided by the company

What are the methods to deposit premium?

Premiums can be deposited either directly by cash or in various bank accounts provided by the company

How policy premium could be paid if one migrates?

The policy premium can be paid from any place of the world to continue the policy.

Is there any provision to pay premium from abroad? Can one pay from credit card?

Yes, premium can be paid by credit card or by demand draft or any other convenient banking transaction.

How can one get statement histories?

One can get statement of premium paid from the agent or branch offices of the company.

Where can policy holders' pay their premium?

Policy Holders can pay their Premium in Branch, Sub Branch of the company and also in following financial organizations.

Institution Branch
NIC Asia Bank Limited All Branch
Narayani National Finance New Road
Siddartha Bank Limited All Branch
Supreme Development Bank Limited Tinkune
Deva Bikash Bank All Branch
Prabhu Remit Prabhu Management (All Branch)
Central Finance Kupondol

 

MATURITY/LAPSE/REVIVAL RELATED

Can one take loan from the deposited premium?

Yes loan can be received to the extent of certain limit of premium paid but one must had paid at least two years annual premium.

What is the minimum maturity period in life insurance policy offered by the company?

Usually five years. However, it may differ by policy purchased.

What is the sum of amount one is paid on completion of the term?

On completion of term or maturity one is paid sum assured and bonus (if policy is with profit).

What is the maximum time allowed for renewal of lapse policy?

Any lapse policy could be renewed within three years of lapse date. Nevertheless, various condition applies in renewing depending upon the term, age, sum assured etc.

Can insured term/period increased or decreased in tenure?

Term/Period of a policy could not be chanted.

 

How lapsed policy could be revived if the insured is in foreign country?

In case of lapsed policy of insured living in foreign country, an application with all necessary documents has to be sent to the company.

NOMINEE/BENEFICIARY RELATED

How survival benefit could be received by beneficiary if insurer is out of the country?

An application of insured along with original policy and identification card of the beneficiary is required.

What if nominee dies?

Change the nominee before policy matures

mascoute