Governance, Risk and Compliance - The Nepalese Insurance Industry
September 2018
57
About the Report
About the Report
Governance, Risk and Compliance-The Nepalese Insurance Industry
Summary
GlobalData's "Governance, Risk and Compliance-The Nepalese Insurance Industry", report is the result of extensive research into the insurance regulatory framework in Nepal.
It provides detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries.
The report brings together GlobalData's research, modeling and analysis expertise, giving insurers access to information on prevailing insurance regulations, and recent and upcoming changes in the regulatory framework, taxation and legal system in the country. The report also includes the scope of non-admitted insurance in the country.
The report provides insights into the governance, risk and compliance framework pertaining to the insurance industry in Nepal, including-
- An overview of the insurance regulatory framework in Nepal.
- The latest key changes, and changes expected in the country's insurance regulatory framework.
- Key regulations and market practices related to different types of insurance product in the country.
- Rules and regulations pertaining to key classes of compulsory insurance, and the scope of non-admitted insurance in Nepal.
- Key parameters including licensing requirements, permitted foreign direct investment, minimum capital requirements, solvency and reserve requirements, and investment regulations.
- Details of the tax and legal systems in the country.
Key Highlights
- Beema Samiti governs and regulates the Nepalese insurance industry.
- The law prohibits non-admitted insurance. However, unauthorized reinsurers may underwrite reinsurance business for risks originating in Nepal on a cross-border basis only.
- Insurance for accident at work and motor vehicle and transport management insurance are compulsory.
- Insurance premium tax is not imposed on insurance products and services.
- Composite insurance is not permitted.
Scope
- The report covers details of the insurance regulatory framework in Nepal.
- The report contains details of the rules and regulations governing insurance products and insurance entities.
- The report lists and analyzes key trends and developments pertaining to the country's insurance regulatory framework.
- The report analyzes the rules and regulations pertaining to the establishment and operation of insurance businesses in the country.
- The report provides details of taxation imposed on insurance products and insurance companies.
Reasons to buy
- Gain insights into the insurance regulatory framework in Nepal.
- Track the latest regulatory changes, and expected changes impacting the Nepalese insurance industry.
- Gain detailed information about the key regulations governing the establishment and operation of insurance entities in the country.
- Understand key regulations and market practices pertaining to various types of insurance product.
Products
Products
Insurance, Governance, risk and compliance, Regulatory framework, Life insurance, Property insurance, Motor insurance, Liability insurance, Marine, aviation and transit insurance, Personal accident and health insurance, Compulsory insurance, Licensing requirements, Minimum capital requirements, Solvency requirements, Non-admitted insurance, Reserve requirements, Investment regulations, Licensing fee, Authorization fee, Risk-based capital framework, Accounting standards, Returns requirement, Consumer protection, Law, Regulation, Act, Tax, Insurance premium tax, Corporate tax, VAT, Legal system, Court system
Table of Contents
Table of Contents
Table of Contents
1 INTRODUCTION 6
1.1 What is this Report About? 6
1.2 Definitions 6
2 GOVERNANCE, RISK AND COMPLIANCE 8
2.1 Legislation Overview and Historical Evolution 9
2.2 Latest Changes in Regulation 10
2.3 Legislation and Market Practice by Type of Insurance 15
2.3.1 Life insurance 18
2.3.2 Property insurance 19
2.3.3 Motor insurance 20
2.3.4 Liability insurance 21
2.3.5 Marine, aviation and transit insurance 21
2.3.6 Personal accident and health insurance 21
2.4 Compulsory Insurance 22
2.4.1 Insurance for accident at work 22
2.4.2 Motor vehicle and transport management insurance 23
2.4.3 Insurance for overseas migrant workers 36
2.5 Supervision and Control 38
2.5.1 International Association of Insurance Supervisors (IAIS) 38
2.5.2 Beema Samiti 39
2.6 Non-Admitted Insurance Regulations 40
2.6.1 Overview 40
2.6.2 Intermediaries 40
2.6.3 Market practices 40
2.6.4 Fines and Penalties 41
2.7 Company Registration and Operations 42
2.7.1 Type of insurance organization 43
2.7.2 Establishing a local company 43
2.7.3 Foreign ownership 45
2.7.4 Types of license 45
2.7.5 Capital requirements 46
2.7.6 Solvency margin 46
2.7.7 Reserve requirements 47
2.7.8 Investment regulations 47
2.7.9 Statutory return requirements 48
2.7.10 Fee structure 49
2.8 Taxation 50
2.8.1 Insurance premium or policy taxation 50
2.8.2 Withholding taxes on premium paid overseas 50
2.8.3 Corporate tax 50
2.8.4 VAT 51
2.8.5 Captives 51
2.9 Legal System 52
2.9.1 Introduction 52
2.9.2 Access to court 52
2.9.3 Alternative dispute resolution 53
3 APPENDIX 54
3.1 Methodology 54
3.2 Contact GlobalData 54
3.3 About GlobalData 55
3.4 GlobalData's Services 56
3.5 Disclaimer 57
List of Figure
List of Figures
Figure 1: Nepal-Insurance Supervision and Control at Various Levels 38
Figure 2: Nepal-Insurance Regulatory Frameworks for Company Registration and Operation 42
List of Table
List of Tables
Table 1: Insurance Industry Definitions 6
Table 2: Nepal-Insurance Regulatory Framework Key Features 8
Table 3: Nepal-Liability Limits, Premium Rate and Commission Rate for Microinsurance Products 12
Table 4: Nepal-Life Insurance Regulatory Framework 18
Table 5: Nepal-Property Insurance Regulatory Framework 19
Table 6: Nepal- Motor Insurance Regulatory Framework 20
Table 7: Nepal-Liability Insurance Regulatory Framework 21
Table 8: Nepal-Motor Insurance Premiums Charged for Motorcycles, Personal Cars and Commercial Vehicles Based on Their Life 25
Table 9: Nepal-Motor Insurance: Premium Rates for Policies with a Term Period of Less than One Year 26
Table 10: Nepal-Premium Rates for Motorcycle 27
Table 11: Nepal-Premium Rates for Government Motorcycle 27
Table 12: Nepal-Premium Rates for Personal Vehicles 27
Table 13: Nepal-Premium Rates for Government Personal Vehicles 28
Table 14: Nepal-Premium Rates for Solar Electric Vehicles 28
Table 15: Nepal-Premium Rates for Private Transport Vehicle 28
Table 16: Nepal-Premium Rates for Government Transport Vehicle 29
Table 17: Nepal-Premium Rates for Tankers 29
Table 18: Nepal-Premium Rates for Government Tankers 29
Table 19: Nepal-Premium Rates for Commercial Vehicles used for Travelling Purposes 30
Table 20: Nepal-Premium Rates for Insurance of Government Commercial Vehicles used for Travelling Purposes 31
Table 21: Nepal-Premium Rates for Taxis 31
Table 22: Nepal-Premium Rates for Insurance of Tempos used for Rental Purposes 31
Table 23: Nepal-Premium Rates for Insurance of Government Tempos 32
Table 24: Nepal-Premium Rates for Insurance of Vehicles used for Agriculture and Forestry 32
Table 25: Nepal-Premium Rates for Insurance of Government Vehicles used for Agriculture and Forestry 32
Table 26: Nepal-Premium Rates for Insurance of Tractor and Power Trailers 33
Table 27: Nepal-Premium Rates for Insurance of Government Tractor and Power Trailers 33
Table 28: Nepal-Premium Rates for Insurance of Construction Equipment Vehicles 33
Table 29: Nepal-Premium Rates for Insurance of Government Tractor and Power Trailers 34
Table 30: Nepal-Motor Insurance: Mandatory Deductible, Voluntary Deductible and Discounts 35
Table 31: Nepal-No-Claims Discount Rates 36
Table 32: Nepal-Factors Considered for Calculation of Required Solvency Margin 47
Table 33: Nepal-Corporate Tax Rates for the Financial Year 2018 50
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