Long-term vision
The long-term prospect is to make Nepalese insurance sector comparable with the international insurance market through the extension of innovative polices
in insurance business by providing economic, social security to industrial sector, other business and general public against possible risks brought about by different
factors like economic, social activities and natural catastrophe.
- Objective
- To provide economic, social security against the risks occurred through economic and social activities as well as natural catastrophe.
- To bring about reduction in the outflow of funds through the insurance.
- To make the insurance business reliable by securing the investment of the insured in the life insurance.
- Quantitative Targets
- At present, the contribution of insurance sector to gross domestic product (non-agriculture sector) is 1 percent, which will be increased at least to 2.5 percent.
- At present, a total of Rs. 11 billion has been allotted as development fund through insurance premium, paid up capital and insurance fund, which will be increased to Rs. 20 billion.
- At present, the insurance fund amounts to Rs 7.24 billion, which will be increased to Rs 12 billion.
- At present, insurance premium earnings amounts to Rs 2.79 billion, which will be increased to Rs. 5.5 billion.
- Strategy
- Insurance will be developed as a powerful medium of financial savings mobilization.
- Insurance will be strengthened as a business that provides economic -social security.
- Insurance will be developed and extended as a competitive and reliable investment sector.
- Insurance will be developed as an important supplier of long -term capital necessary for development projects.
- Policy and Program
- To develop Insurance as a powerful medium of financial savings mobilization.
(related to strategy 1)
- Promotion of annuities schemes will be encouraged.
- The existing investment manual will be made private sector oriented.
- To develop Insurance as a business that provides economic-social security.
(related to strategy 2)
- Necessary arrangement will be made to widen the scope of insurance
- In the context of minimum public awareness concerning insurance,
- To develop Insurance as a competitive and reliable investment sector.
(related to strategy 3)
- Re-insurance company will be established through joint ventures with the
foreign insurance companies.
- Comprehensive surveyor package will be prepared and executed to make
claim assessment practical and efficient
- An Insurance Institute will be established under the Insurance Board to
undertake regular study and research in insurance sector, to provide
training on different aspects relating to insurance sector and to assist in
the development of overall insurance sector.
- National life insurance fund or other alternative arrangements will be
made to save or minimize the insured FROM the losses to be occurred
through liquidation or dissolution of the life insurance companies.
- Necessary legal and institutional arrangement will be made to strengthen
regulatory process, efficiency and capacity of the Insurance Board.
- To develop Insurance as an important supplier of long-term capital.
(related to strategy 4)
- Appropriate legal provision will be made to reduce outflow of capital
against insurance premium by having the system of insuring national
assets within the country itself.
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