Life Insurance Prospect in Nepal

The history of insurance industry in Nepal is not long. It has its roots in the 20th century. The first
insurance company, "Nepal Insurance and Transport Company Ltd" (now named Nepal Insurance
Co. Ltd) was established in 1947 (2004 BS) . Prior to that most of the branches of the Indian insurers
were doing business in Nepal which was not regulated.
Life insurance includes products like endowment policies, whole life policies, term policies and
pension plans
It is estimated that less than 6% of the population has some forms of life insurance, provided either
by group of individual policies

Trend Analysis of :
Insurance Premium

Human life is full of risks and uncertainty. Each and every step of life is full of risks. We
can not eliminate risk. However, we can make provision for financial security against risk.
Insurance is the means to get financial security against risk.

Insurance is a way of reducing the uncertainty of the occurrence of an event. Insurance

is an investment, from which we get a return only when a certain loss occurred from the
predetermined incident.

“Insurance has been defined as a plan by which a large number of people have
associated themselves and transfer to shoulders of all, risks to attach individuals. J.H.
Magee”

Insurance plays a very important role in the modern economy. It provides financial
security of life and property of the business and private owners. The insurance helps the
business owner labor, as well as people, feel security against future unexpected risks.

Insurance has a wide scope in the modern world. There are varieties of insurance policy
available in Nepal to secure different types of risks. There is generally two types of life
insurance provided by insurance companies in Nepal. One is life insurance and another
is nonlife insurance. check here List of Life Insurance Companies in Nepal

The life insurance business that has a nearly six-decade-old history in Nepal has
witnessed significant growth in recent years. Rastriya Beema Sansthan provides both life
and non-life insurance services.

The main challenge of Life Insurance Companies in Nepal is to make aware the people
about the importance of life insurance. Why should people be insured? Life Insurance
Companies in Nepal is very fair and the Government Authorized Institution always
monitors all the insurance companies in Nepal.