September 1, 2020 | INVESTOPAPER
Nepal Bank, the first bank of Nepal was established in 1994 BS (1937 AD) in order to foster the growing economic and social development. With the establishment of Nepal Bank Limited, there was a need for insurance in order to secure the loans provided by the bank to various industrial establishments. During this period, some Indian insurance companies have started non-life insurance services in Nepal.
Nepal Insurance As The First Insurance Company In Nepal
The first insurance company was established in Nepal in 2004 B.S. It was named ‘Nepal Malchalani Tatha Beema Company’. This institution was established under the Nepal Companies Act with the full ownership of Nepal Bank Limited. In 2016, the company was renamed ‘Nepal Insurance and Transport Company Limited‘. Later in the year 2048 BS, it was further renamed as Nepal Insurance Company Limited to operate a non-life insurance business in Nepal. Thus, we can say, Nepal Insurance Company is the first insurance company in Nepal. It is currently operating non-life insurance business under the Insurance Act 2049.
Establishment Of Rastriya Beema Sansthan
In Poush 1, 2024 BS (1968 AD), the government of Nepal established “Rastriya Beema Sansthan” under the Company Act with a capital of Rs.1 crores. Since Falgun 11, 2024 BS, the company has operated a non-life insurance business only. In Poush 1, 2025 BS, the company was transformed into an institution under the ‘Rastriya Beema Sansthan Act 2025’.
Rastriya Beema Sansthan started life insurance business from Falgun 7, 2029 BS. It is believed that the institutional development of insurance started in 2029 BS when the Rastriya Beema Sansthan started the life insurance business. After that, the company had a monopoly in the Nepali insurance market for about a decade and a half.
Before 2025 BS, Ruby General Insurance Company Limited (now National Insurance Company), The Oriental Insurance Company Limited, Sterling Insurance Company Limited (later merged with The Oriental Insurance Company Limited) operated insurance businesses in Nepal.
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Establishment Of New Insurance Companies
With the political change of 2046 BS, the government adopted a liberal economic policy and a number of new insurance companies entered the market. Following the restoration of democracy in Nepal, various non-life and life insurance companies have been allowed to conduct insurance business in accordance with the policy of economic liberalization adopted by the Government of Nepal in 2046/47 BS.
National Life and General Insurance Company Limited was established in 2044 BS as a private company doing insurance business. It was initially allowed to do a non-life insurance business. Only two years later it was allowed to do life insurance business.
From 2050 to 2065 BS, seven life insurance and thirteen general insurance companies came into operation. After 2065 BS, the licensing for new insurance companies was halted by the Insurance Board (Beema Samiti), the regulatory body of insurance companies in Nepal. This ban was lifted and the board issued entry permission for 10 new life insurance companies and 3 non-life Insurance that came into operation from 2074 BS onwards.
The table below provides information about the date of establishment of life insurance and non-life insurance companies in Nepal.
Date Of Establishment Of Life Insurance Companies In Nepal
|S.N||Life Insurance Companies In Nepal||Date Of Establishment (In B.S)|
|1||Rastriya Beema Sansthan Ltd.||Poush 1, 2025|
|2||National Life Insurance Co. Ltd.||Poush 23, 2044|
|3||Nepal Life Insurance Co. Ltd.||Baisakh 4, 2058|
|4||Met Life Alico Co. Ltd.||Shrawan 18, 2058|
|5||LIC Nepal Ltd.||Shrawan 23, 2058|
|6||Surya Life Insurance Co. Ltd.||Chaitra 6, 2064|
|7||Gurans Life Insurance Co. Ltd.||Chaitra 18, 2064|
|8||Asian Life Insurance Co. Ltd.||Chaitra 21, 2064|
|9||Prime Life Insurance Co. Ltd.||Jestha 22, 2065|
|10||Union Life Insurance Co. Ltd.||Ashad 20, 2074|
|11||IME Life Insurance Co. Ltd.||Ashad 20, 2074|
|12||Jyoti Life Insurance Co. Ltd.||Ashad 20, 2074|
|13||Reliable Life Insurance Co. Ltd.||Shrawan 18, 2074|
|14||Reliance Life Insurance Co. Ltd.||Shrawan 18, 2074|
|15||Sun Nepal Life Insurance Co. Ltd.||Shrawan 18, 2074|
|16||Citizen Life Insurance Co. Ltd.||Bhadra 7, 2074|
|17||Prabhu Life Insurance Co. Ltd.||Bhadra 7, 2074|
|18||Sanima Life Insurance Co. Ltd.||Bhadra 7, 2074|
|19||Mahalaxmi Life Insurance Co. Ltd.||2075|
Date Of Establishment Of Non-Life (General) Insurance Companies In Nepal
|S.N||Non-Life Insurance Companies In Nepal||Date Of Establishment (In B.S)|
|1||Nepal Insurance Company Limited||Ashoj 8, 2004|
|2||Oriental Insurance Company Limited||Bhadra 30, 2024|
|3||National Insurance Company Limited||Poush 23, 2044|
|4||Himalayan General Insurance Company Limited||Shrawan 6, 2050|
|5||United Insurance Company Limited||Mangsir 16, 2050|
|6||Premier Insurance Company Limited||Baisakh 8, 2051|
|7||Everest Insurance Company Limited||Jestha 17, 2051|
|8||Sagarmatha Insurance Company Limited||Ashad 12, 2053|
|9||Neco Insurance Company Limited||Jestha 17, 2053|
|10||Prabhu Insurance Company Limited||Shrawan 4, 2053|
|11||IME General Insurance Company Limited||Magh 10, 2057|
|12||Prudential Insurance Company Limited||Baisakh 20, 2059|
|13||Shikhar Insurance Company Limited||Karthik 2, 2061|
|14||Siddhartha Insurance Company Limited||Chaitra 23, 2062|
|15||NLG Insurance Company Limited||Ashoj 23, 2062|
|16||Lumbini General Insurance Company Limited||Ashad 31, 2062|
|17||Rastriya Beema Company||Ashad 15, 2070|
|18||Ajod Insurance Company Limited||Jestha 29, 2075|
|19||General Insurance Company Limited||Jestha 29, 2075|
|20||Sanima General Insurance Company Limited||Jestha 29, 2075|