History of Insurance

Condition of Life 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.

The life insurance premium Income for nine years from F.Y.2051/52 to 2059/60(Rs. in crore) was as under.