Nepal Insurance Authority

The Nepal Insurance Authority (Nepal Beema Pradhikaran), previously known as Beema Samiti, operates under the Ministry of Finance of the Government of Nepal. It serves as the regulatory authority overseeing the insurance sector within the nation. The institution's primary role is to ensure the insurance market in Nepal is professional, ethical, and progressively advancing.

Historical Background and Legislative Framework

With the advent of democracy in 1990, the insurance landscape in Nepal underwent significant transformations to adapt to evolving demands. The introduction of the Insurance Act of 1992, replacing the outdated Act of 1968, laid the groundwork for the establishment of the Nepal Insurance Authority. This act was a milestone in setting a regulatory framework aimed at organizing, standardizing, and fostering the growth of the insurance sector in Nepal.

Vision and Mission

• Vision: The Nepal Insurance Authority aims to be a distinguished and leading institution in Nepal's insurance industry.
• Mission: It strives to be acknowledged for its professionalism, learning culture, competency, and integrity as a regulator.

Core Values

The Authority upholds core values such as integrity, transparency, accountability, teamwork, service orientation, fairness, and innovation. These values guide its operations and interactions within the insurance sector.

Strategic Goals and Objectives

1. Insurance Access and Inclusion: The Authority focuses on increasing insurance coverage and introducing alternative distribution channels to make insurance more accessible.

2. Insurance Sector Development: It works on enhancing regulatory standards, supporting mergers and acquisitions, and promoting the growth of the reinsurance sector.

3. Insurance Sector Stability: Adopting risk-based supervision, capital requirements, and moving towards the Solvency II Framework are key priorities to ensure the sector's stability.

4. Insurance Infrastructure: Improving the legal framework for claims settlement and consumer complaint processes are crucial for infrastructure development.

5. Governance: Increasing visibility, establishing a Policyholders Protection Fund, and enhancing accountability and transparency are vital governance goals.

6. Capacity Development: The Authority aims at human and physical capacity development, establishment of branches in federal states, IT enhancement, insurance education inclusion in the national curriculum, and the establishment of an Insurance Academy.

Roles, Functions, and Responsibilities

The Nepal Insurance Authority is tasked with several key functions and responsibilities, including:

• Advising the Government of Nepal on policy formulation for the insurance sector.
• Setting investment guidelines for insurers and identifying priority sectors.
• Registering, renewing, and overseeing insurance agents, brokers, and surveyors.
• Arbitrating disputes between insurers and insured.
• Issuing directives to insurers and formulating bases for protecting insured interests.
• Conducting other necessary regulatory functions to promote a healthy insurance market.

Organizational Overview: 

The organizational structure of our institution is designed to ensure the effective formulation and implementation of policies through an annual budget and program agenda, directed by the Board. The Secretariat of the Chairman and the Executive Director play pivotal roles in guiding the organization's strategic direction and operational management.

Our organization is segmented into several divisions, each with specific responsibilities and sections to cater to various aspects of the insurance sector:

1. Legal and Regulation Division: This division is tasked with providing legal advice to the Board and the insurance sector, drafting laws, rules, and regulations related to insurance legal aspects, and regulating the insurance sector in accordance with the Insurance Act. It comprises the Legal Section, Grievance Handling Section, Claim and AML Section, and Regulations Section.

2. Human Resource and Insurance Policy Division: Focused on administering personnel and general services management, including property management owned by the Board. This division also prepares insurance policies and guidelines as required by the Insurance Act. It includes the Human Resource Section, Insurance Policy Section, and Account Section.

3. Supervision, Agriculture & Micro Insurance, Re-Insurance/Research Division: This division supervises the insurance sectors, focusing on agriculture, micro insurance, re-insurance, and research in line with the Insurance Act. It is made up of the On-Site Inspection Section, Off-Site Inspection Section, and the Agriculture, Micro Insurance, Re-Insurance, and Research Section.

4. Management Information System and License Division: Responsible for licensing insurers, insurance agents (individual/corporate), and surveyors (individual/corporate) as per the Insurance Act. It also acts as the data bank for the organization. This division includes the License Section and MIS Section.