25th April, 2015: The land that we feel is stable, thus the most immovable, all of a sudden shakes then nothing remains the same…
The insurance history traces back a long way before the 2015 earthquake, however, one cannot deny the importance of insurance policy was taught to this generation of Nepalese people with the occurrence of earthquake. The earthquake itself sets an example that there is nothing that shall remain the same forever, so insurance can be needful in preventing the damages caused at times of unexpected events. While life insurance has been a popular trend in the Nepalese market as people are well aware about the benefits that the nominees will be entitled to, non-life insurance has also been increasing in the recent years.
Non life insurance policy basically refers to the agreement between the insured (a person or company covered by insurance) and insurer (an insurance company), where the insured receives financial protection or compensation against losses from the insurer. Non life insurance basically involves the insurance of property to protect them from the events of damage and accidents. For instance, fire insurance, motor insurance, miscellaneous insurance, marine insurance, household insurance, engineering insurance, aviation insurance, micro insurance, livestock and crop insurance, insurance against burglary, cash in transit insurance, fidelity guarantee insurance, personal accident insurance, medical expenses insurance, electronic equipment insurance, machinery breakdown insurance, liability insurance, money insurance, etc.
In context of Nepal, there are 17 non-life insurance companies established under Company Act, 2063, however, they are subject to set of comprehensive rules and regulations set by Insurance Board of Nepal; under the Insurance Act, 1992. Insurance Board of Nepal is an independent body that is responsible to regulate, supervise and systematize the insurance industry in the country. The licensed companies are obliged to follow the directives, rules and bylaws set by the Insurance Board.
The list of non-life insurance companies in Nepal is as follows:
Furthermore, General Insurance, Sanima Insurance, Ajod Insurance and Manakamana Insurance have applied for license to open non-life insurance firms. Insurance Board, therefore, will issue license to non-life insurance firms if they meet required criteria, as per Insurance Board officials. Also, the companies like Oriental Insurance Company and National Insurance Company have not listed their shares in NEPSE till date. Recently, NB Insurance has also changed its name to IME General Insurance Company Limited.
Note: The data in the provided figure has been extracted from the website of the concerned companies and are subject to be changed if not updated in the concerned website.
Check website tomorrow for another series:
- Series II - Know more about non life insurance company and design your investment portfolio accordingly!
