Nlic Project Work Report From Eashwari Bhandari(ABIMS)

8/14/2019 Nlic Project Work Report From Eashwari Bhandari(ABIMS)

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A R O J E C T R E P O R TO N

Life Insurance for every one

AL-BARKAAT INSTITUTE OF MANAGEMENTL-BARKAAT INSTITUTE OF MANAGEMENT STUDIES, ALIGARHTUDIES, ALIGARH

SUBMITED BY:EASHWARI PRASAD BHANDARI

MBA (2008-10)Roll no. .

INDURSRY GUIDE FACULTUY GUIDE

Mr. Umapati Pokhrel Mr. Faraz Ahmad

(Branch Manager) (Lecturer- ABIMS)

Nepal life insurance Company AligarhButwal (Rupendehi)West Nepal

TABLE OF CONTENT

Topic Page No

- , Al igarhAL -BARKAAT INST ITUTE OF MA NAG EMENT STU DIES ,Anoopshahr road, Al igarh

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Declaration 3

Preface 4

Acknowledgement 5

Chapter 1 Executive Summary of the project 6

Chapter 2 Introductions 8-11

Scope of Project

Objective of Project

Research Methodology

Research Design

Data Collection

Presentation of Data

Period of Study

Limitation

Chapter 3 Industry Overview 12-30

Chapter 4 Organizational Profiles 31-63

NLIC : Overview

Vision & Value

Fact Sheet

Products

(NLIC Insurance plans)

Management Team

Chapter 5 Main Report 64-94

Data Analysis

Findings


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Conclusion

Suggestion

Chapter 6 Bibliographies 95-100

DECLARATION

I hereby declare that the project work entitled is an original and bonafide work done by me.

This project is being submitted as a part of MBA (Master of Business Administration) from

Al- Barkaat Institute of Management Studies, Aligarh (Uttar-Pradesh).


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The content of this report is based on the information collected by me during my tenure at

NEPAL LIFE INURANCE COMPANI LIMITED Butwal.

EASHWARI PRASAD BHANDARI

ABIMS, ALIGARH

PREFACE

Progress is the continuous process. It is relative and absolute. We cant stop a certain

destination and declare that target has been achieved and we need not go further. The summer

training programs is designed to give the future managers feel of the corporate happenings and

work culture. These real life situations are entirely different from the stimulated exercise

enacted in an artificial environment inside the classroom and it is precisely because of this


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reason that this summer training program is designed, So that the manager of tomorrow not

feel ill in the case when the time comes to shoulder responsibilities. The summer training is a

bridge between the institution and organization. Summer training program made us to

understand how theoretical knowledge will be applied in the practical field.

It was exactly in this s context that I was privilege to join NLIC (Nepals No one private life

insurance company) on 16th of June 2009, as a summer trainee. NLIC (Nepal Life Insurance

Company Limited) is known as not only for its professional management, but also for its

enlightened and progressive approach towards employee welfare and betterment of the society

and customer.

The experience that I have gathered over the past two months has certainly provided me with

an orientation, which, I believe, will help me, Shoulder any assignment successfully in future.

During this period the report which I made was done after a deep, comprehensive and full-

fledged study and is based on my original research and investigation.

ACKNOWLEDGEMENT

Any research work is not complete and prefect without the help and guidance from other

people. This project work of mine LIFE INSURANCE SAVING, INVESTMENT OR ?

in the light of (NEPAL LIFE INSURANCE COMPANY LIMITED) would not have

reached its fulfillment hadnt been the guidance given to me by various people whom come

across in the department. This report is the result of cooperation of the officials of the

department without which this project would have been complete.


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I would like to express my sincere gratitude to Mr. FAIZ SIDDHAQE (Director ABIMS)

Mr. FARAZ AHAMAD (Marketing) and Mr. ADIL ZIA (Placement In charge) of Al-

Barkaat Institute of Management Studies, Aligarh, who have given me such a big

opportunity to do a project in an esteem organization like Nepal Life Insurance Company

Limited in Nepal.

I would like to extend my sincere thanks to Mr. MANOJ KUMAR BHATTARAI (CEO

NLIC) for providing me an opportunity to do a project in their esteemed organization and for

the guidance and cooperation by officials of Nepal Life Insurance Company Limited, in the

course of my interface with them.

I whole heartedly acknowledge the intellectual stimulation for my esteem guide Mr.

UMAPATI POKHREL (Branch Manager, Butwal), Mr. SUSHIL KUMAR CHAUDHARY

(DGM, Corporate office, Katmandu) and Mr. MAHESH NIRAULA (Manager, Corporate

office, Katmandu) for their continuous help and guidance throughout the project duration in

spite of their busy schedule`

EASHWARI PRASAD BHANDARI

ABIMS, ALIGARH


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PROJECT TITLE LIFE INSURANCE (SAVING,

INVESTMENT OR. Finding awareness levels

of life insurance with special emphasis on NLIC

vis other player in market.

NAME OF THE COMPANY Nepal Life Insurance Company Limited


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(Milan choke, Butwal, Nepal)

PLACE OF THE WORK Butwal.

DURATION 45 days

ORGANIZATION GUIDE Mr. Umapati Pokhrel (Branch Manager- Butwal)

Mr. Sushil Kumar Chaudhary (DGM- Corporate

Office)

INTERNAL GUIDE Mr. Faraz Ahmad

MAJOR OBJECTIVE To know which mode of investment is most

popular among the people and how they are

looking Life insurance policies.


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SCOPE OF THE PROJECT

In this chapter the objective of the study are discussed and the research methodology is

designed. The types of the research, sampling units, size etc. are taken into consideration. Also

the limitations are taken out from the survey.

The project helps me chance to understand the changing behavior of the customer towards

Investment sector. And become helpful to provide me knowledge about the problems facing by

the company. As the political environment and conditions are rapidly changing, and Nepal is in


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front of Historical changes, thus this project and research work help to provide a beneficial

opportunity to understand the views of people towards investment and savings.

The project work helps me to understand the thinking of people towards the attractive

investment sector and saving policies adopted by them in the changing scenario of Nepal. The

project is also providing me an opportunity to know the peoples changing behavior for the

investment and saving sector due to the political instability.

OBJECTIVE OF THE STUDY -

1. To know about the modern techniques of investment in Nepal.

2. Analyze the causes of acceptance level of insurance plan of Nepal Life

Insurance Company.

3. To know the view of Nepalese people towards life insurance.

RESEARCH MEHTODOLOGY

Research designType of research Exploratory Research

Sampling Type -Private Employees,

-Government Employees,

-Self Employed.

Sample Size 95


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Sampling Unit Butwal

Data Collection Method

1. Primary Data

-Customer Visit

-Agent Visit

2. Secondary Data

- Concerned data

- Business news papers, Magazines, Annual reports.

- Internet

Presentation of Data

Data has been presented in the form of tables and bar diagrams.

Period of study: 16th June 2009 to 4th August 2009.

LIMITATION

The time and cost factors prevented me to take large number of sample size.

Busy schedule of customers is also another limiting factor which prevents me to widen

the scope of the study.

Busy schedule of the consumer and officials is another limiting factor during the

project work.

Closing of fiscal year of the Insurance Company create problem to me for collecting

the information regarding insurance form office.

Political disturbance and instability create problem to me during collecting the data.

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The current issue of NLIC and National life and general insurance company play a

role of barriers towards collection of information through respondents.


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Definition of insurance

Insurance is a means of providing protection against financial loss in a great variety of

situations.

Basically Insurance is known as means of protection.

Insurance is an agreement by which one makes regular payment to a company who

paid an agreed sum if damage, loss or death occurs.

Insurance is a contract that provides compensation for specific losses in exchange for a

periodic payment. An individual contract is known as insurance policies.

A system under which individuals, business, and other organizations or entities, in

exchange for payment of a sum of money (called an insurance premium), are


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guaranteed compensation for losses resulting from certain perils under specified

conditions in a contract.

It is a contract in which one party agrees to pay for another party's financial loss

resulting from a specified event.

The act, system, or business of insuring property, life, one's person, etc., against loss

or harm arising in specified contingencies, as fire, accident, death, disablement, or the

like, in consideration of a payment proportionate to the risk involved

Coverage by contract in which one party agrees to indemnify or reimburse another for

loss that occurs under the terms of the contract.

Life Insurance is transfer of a risk to the insurer. The risk assumed by the insurer is the

risk of death of the insured. It is contract between Insured and Insurer to compensate

financial based on sum assured and premium paid there in.

Origin of Insurance

Basically there are two views belongs to insurance. The first one is, Almost 4,500 years ago,

in the ancient land of Babylonia, traders used to bear risk of the caravan trade by giving loans

that had to be later repaid with interest when the goods arrived safely. In 2100 BC, the Code of

Hammurabi granted legal status to the practice. Life insurance had its origins in ancient Rome,

where citizens formed burial clubs that would meet the funeral expenses of its members as

well as help survivors by making some payments.

As European civilization progressed, its social institutions and welfare practices also got more

and more refined. With the discovery of new lands, sea routes and the consequent growth in

trade, medieval guilds took it upon themselves to protect their member traders from loss on

account of fire, shipwrecks and the like. Since most of the trade took place by sea, there was

also the fear of pirates. So these guilds even offered ransom for members held captive by


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pirates. Burial expenses and support in times of sickness and poverty were other services

offered. Essentially, all these revolved around the concept of insurance or risk coverage. That's

how old these concepts are, really. In 1347, in Genoa, European maritime nations entered into

the earliest known insurance contract and decided to accept marine insurance as a practice.

The growing years:

The 19th century saw huge developments in the field of insurance, with newer products being

devised to meet the growing needs of urbanization and industrialization. In 1835, the infamous

New York fire drew people's attention to the need to provide for sudden and large losses. Two

years later, Massachusetts became the first state to require companies by law to maintain such

reserves. The great Chicago fire of 1871 further emphasized how fires can cause huge losses in

Densely populated modern cities. The practice of reinsurance, wherein the risks are spread

among several Companies, was devised specifically for such situations. There were more

offshoots of the process of industrialization. In 1897, the British government passed the

Workmen's Compensation Act, which made it mandatory for a company to insure its

employees against industrial accidents. With the advent of the automobile, public liability

insurance, which first made its appearance in the 1880s, gained importance and acceptance? In

the 19th century, many societies were founded to insure the life and health of their members,

while fraternal orders provided low-cost, members-only insurance.

Even today, such fraternal orders continue to provide insurance coverage to members as do

most labor organizations. Many employers sponsor group insurance policies for their

employees, providing not just life insurance, but sickness and accident benefits and old-age

pensions. Employees contribute a certain percentage of the premium for these policies. And

according to another view, Insurance is born on sixteenth century. In 18th June 1583 William


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Gibbons is the first person who insures himself. His Insurance is done only for one year. At

that time Insurance is done only for one year and renewed latter.

Types of insurance

Generally there are two types of insurance.

1. Life Insurance

2. General Insurance ( Non life insurance )

1. Life Insurance-

Life insurance, sometimes referred to as life assurance, provides for payment of a sum of

money upon the death of the insured. In addition, life insurance can be used as a means of

investment and also a means of saving.

Insurance in which the risk insured against is the death of a particular person, the insured,

upon whose death while the policy is in force, the insurance company agrees to pay a started

sum or income to the beneficiary. In generally, Insurance related to the living beings is life

insurance. Now a days Life Insurance is using as different mode like mode of saving , mode

of transfer of risk, mode of tax saving , mode of Income generation etc.

Now a days people are active towards their safety and searching the several way of financial

safety. Insurance is one of the ways of financial security. Insurance has its own history

sixteenth century. The first person who takes the Insurance plan in 18

th

June 1583 was

Williams Gibbons. His Insurance is done for only one year. That time Life Insurance is done

for only one year and it should be renewed every year as Non life insurance now a days.

2. General Insurance -

General insurance policies, including automobile and homeowners policies, provide payments

depending on the loss from a particular financial event. General insurance typically comprise


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any insurance that is not determined to be life insurance, and is called property and casualty

insurance in the U.S.

In common sense General Insurance is referred as non life insurance. This type of insurance is

done for transfer the risk of property by the one person to another company (Insurance

Company).For this purpose some premium must be paid to the company and company agree

to bear the risk of such property. If any damage take place during the insurance period,

company compensate for that damage or loss. Such kind of insurance is non refundable and

payable only when property of insured thing is destroyed. Basically In such type of Insurance

the person who wants to insure his property like building, factory etc. must paid some amount

of money ( calculated according to the norms of the Insurance company) to the Insurance

Company and such a way the person can transfer financial risk to the company. If any

damage occur to the insured property, the insurance company compensate to the insurer

(according to the contract). These Insurance is renewed every year and is non refundable.

These Insurance cannot be used as saving and for Income generation thus are less popular in

Nepal than the Life Insurance.

Insurance in Nepal-

Insurance is a federal subject in Nepal and has history dating back 2004B.S. (1947 A.D.). The

modern insurance in Nepal was developed only after the establishment of the first commercial

bank, Nepal Bank Limited & some other industries like Biratnagar Jute Mill, Juddha Match

Factory, etc. At 1992 B.S. (1935 A.D.), Rana Prime Minister Juddha Shumsher Jung Bahadur

Rana brought the concept of insurance policy in Nepal. At these early period Indian Insurance

Company was operating its business in Nepal & there was no such corporation registered in

Nepal before 2004B.S. (1947 AD). In 2004B.S. (1947 AD) Nepal Bima & Chalani Company

was established to make insurance of the trade that took place between India & Nepal In 2016


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B.S (1959 A.D.). Nepal Insurance & Transport Company was established with the investment

of Nepal bank Ltd. The business of this insurance company was limited only to the customs of

Nepal Bank Ltd itself, which was again renamed as Nepal Insurance Company Ltd. Therefore,

the insurance transaction was heavily dependent upon the agents of Indian companies mainly

Indian Life Insurance Corporation, Oriented Fire & General Insurance Company, Rubi General

Insurance Company & Sterling General Insurance Company.

In (26/12/1967 A.D.) Rastriya Beema Sansthan was established as a limited company under

joint venture of public & private sector. This was the first ever established insurance company

which started its business from 23/02/1968 by insuring the motor vehicle of Late King

Mahendra. In 1968, this private company was changed into corporation & named Rastriya

Beema Shansthan which was brought under Rastriya Beema Shansthan Act 1968. In 1967,

HMG organized Beema Committee consisting of 5 members which was respondent for the

overall operation & Management of insurance business in Nepal. The first insurance company

established from the private sector was National Life & General Insurance Company Private

Limited in 1986 A.D. which started its business in1987 A.D. Till 26/07/2009 A.D. there are

about 25 insurance companies out of which 9 are participated in life insurance business. Others

are carrying out non-life insurance business.

History of life and general insurance in Nepal

History of general insurance in Nepal goes back to B.S.2005 (1948 A.D.). Right from 1950

A.D., a number of companies started their operation in General insurance. Presently 15

companies are transacting general insurance business. But start and growth of life insurance

has been very slow. Life Insurance Corporation of India started life insurance business in

Nepal but its function was mostly confined To Katmandu city. LIC stopped its operation in

1972 A.D. Life insurance business was taken over by Rashtriya Beema Sansthan in B.S.2029


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after its incorporation on B.S. 2024/09/01 (16-12-1967 A.D.) and by National life and General

Insurance Company in B.S.2045(1989A.D.) after its incorporation on B.S.2043/02/19 (2-6-

1986)A.D.

The insurance activities were regulated by Insurance Act 2026(1969). The Act and the

regulations were modified and new Insurance Act and Regulations were enacted in

2049(1992). Beema Samiti observes and regulates the insurance activities in Nepal as per the

provisions of Insurance Act 2049 and Insurance regulations 2049B.S.Even though the

Performance of RBS has been impressive, the Reach and density of insurance has been very

low even in comparison with the insurance density in developing nations.

History of Life Insurance in Nepal is not yet old. Insurance in Nepal has its history dating

back till 1947 A.D. Beema Samiti (Insurance Board) is the Insurance Regulatory Authority of

Nepal, The line ministry of the Finance Ministry, Nepal. The word 'Beema' means 'Insurance'

and 'Samiti' denotes 'Board'. Hence, the Word 'Beema Samiti' is synonymous to Insurance

Board which is constituted to systematize, regularize, develop and regulate the insurance

business within the country under Insurance Act, 1992. This Samiti (Board) looks after all the

insurance related activities in the State of Nepal. As a regulatory body, the Board's main

concern is to create a professional, healthy and developed insurance market in Nepal.

Furthermore, after the restoration of democracy in 1990 AD. Insurance environment began to

change simultaneously along with other factors. Thus to meet the requirements of the changing

situation, Insurance Act, 1968 was repelled by new Insurance Act, 1992 (Beema Ain, 2049).

The preamble of the

Act clearly states the purpose of the Act, thus "to establish an Insurance Board to systematize,

regularize, develop and regulate the insurance business". To achieve the goal of the preamble,

Beema Samiti (Insurance Board) is formed as an autonomous body the Insurance Act of 1992.


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Development of Insurance in Nepal

The modern insurance in Nepal was developed only after the establishment of the first

commercial bank, Nepal Bank Limited & some other Industries like Biratnagar Jute Mill,

Juddha Match Factory, etc. At 1992 B.S., Rana Prime Minister Juddha Shumsher Jung

Bahadur Rana brought the concept of insurance policy in Nepal. At these early periods Indian

Insurance Company was operating its business in Nepal & there was no such corporation

registered in Nepal before 2004B.S. (1947 AD). In 2004B.S. Nepal Bima & Chalani Company

was established to make insurance of the trade that took place between India & Nepal. In 2016

B.S.; Nepal Insurance & Transport Company was established with the investment of Nepal

bank Ltd. The business of this insurance company was limited only to the customs of Nepal

Bank Ltd itself, which was again renamed as Nepal Insurance Company Ltd. Therefore, the

insurance transaction was heavily dependent upon the agents of Indian companies mainly

Indian Life Insurance Corporation, Oriented Fire & General Insurance Company, Rubi General

Insurance Company & Sterling General Insurance Company. In 2024/09/01, Rastriya Beema

Shasthan was established as a limited company under joint venture of public & private sector.

This was the first ever established insurance company which started its business from

2024/11/11 by insuring the motor vehicle of Late King Mahendra. In 2025, this private

company was changed into corporation & named Rastriya Beema Shansthan which was

brought under Rastriya Beema Shansthan Act 2025. In 2024, HMG organized Beema

Committee consisting of 5 members which was respondent for the overall operation &

management of insurance business in Nepal. The first insurance company established from the

private sector was National Life & General Insurance Company Private Limited in 2043B.S.

which started its business in 2044. Till 2066/04/12 or 26/07/2009 There are about 25 insurance

companies out of which 9 are participated in life insurance business. Others are carrying out

non-life insurance business.


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List of Life Insurance Companies (As July 2009) in Nepal-

Apart from Rastriya Bima Sansthan, the public sector life insurer, there is 8 other private

sector Life insurance companies are growing the Life insurance business in Nepal. Some of

them are joint venture of Nepalese groups and global insurance giants and some of them are

established through investing by Nepalese group only.

Life Insurance Company in Public Sector

In Nepal currently there is only Insurance Company is playing the role of Life and General

Insurance business as public sector.

Rastriya Bima Sansthan

Life Insurance Companies In private sector-

1. National Life Insurance Company Limited

2. Nepal Life Insurance Company Limited

3. Life Insurance Corporation (Nepal) Limited

4. American Life Insurance Company Limited

5. Asian Life Insurance Company Limited

6. Gurans Life Insurance Company Limited

7. Surya Life Insurance Company Limited

8. Prime Life Insurance Company Limited

General Insurance Companies in Nepal


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1. Nepal Insurance Company Limited

2. The Oriental Insurance Company Limited

3. . National Insurance Company Limited

4. Himalayan General Insurance Company Limited

5. United Insurance Company (Nepal) Limited

6. Premier Insurance Company (Nepal) Limited

7. Everest Insurance Company Limited

8. Neco Insurance Limited

9. Sagarmatha Insurance Company Limited

10. Alliance Insurance Company Limited

11. NB Insurance Company Limited

12. Prudential Insurance Company Limited

13. Shikhar Insurance Company Limited

14. Lumbini General Insurance Company Limited

15. NLG Insurance Company Limited

16. Siddartha Insurance Limited

Related Act of Insurance-

Even Insurance is grown in Nepal till 2004B.S. (1947 A.D.) but it is operated without any act.

The insurance sector went through a full circle of phases from being unregulated to completely

regulate and then currently being partly deregulated. It is governed by a number of acts, with

the first one being the Insurance Act 2049 B.S. (1992 A.D.).

Whereas, it is expedient to establish an Insurance Board to systematize, regularize, develop

and regulate the Insurance Business, in the


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Twenty- first year of the regime of HIS MAJESTY KING BIRENDRA BIR BIKRAMSHAH

DEVA, the Parliament has made this Act. The Act is made with the guideline of the Board.

The Insurance Act 2049 B.S. (1992 A.D.)

The Insurance Act, 2049 B.S. (1992 A.D.) was the first legislation governing all forms of

insurance to provide strict state control over insurance business.

Constitution and Management of the Board

1. An Insurance Board shall be constituted to systematize, regularize, develop and

regulate the Insurance Business.

2. The Board pursuant to sub-section (1) shall consists of the following Members:

(a) A person nominated or designated by the

Nepal Government Chairman

(b) Representative, Ministry of Law,

Justice and Parliamentary Affairs Member

(c) Representative, Ministry of Finance Member

(d) A person nominated by the Nepal Government from among the persons having the

special knowledge in the Insurance Business Member

(e) A person nominated by the Nepal Government from among the

Insurance. Member

3. An employee designated by the Board shall perform the duty as a Secretary of the

Board.

4. The Nepal Government may make alteration of the Members of the Board by publishing

a notification in the Nepal Gazette, if it deems necessary.


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5. If it is deemed necessary, the Board may invite any national or foreign experts in the

meeting of the Board as an observer.

6. The tenure of the nominated Members of the Board shall be four years. They may be re-

nominated up to twice after the expiry of their tenure.

Insurance Regulation Act 2049 B.S. (1993 A.D.)

In exercise of the power conferred by section 47 of the Insurance Act, 2049, Nepal

Government has made the following Rules for the Life Insurance Companies, Non Life

Insurance Companies and for the Re Insurance Companies.

For Life Insurance Business -

(1)- The Insurer may operate the following Insurance Business under the Life Insurance

Business:-

(a) Whole Life Insurance,

(b) Endowment Life Insurance,

(c) Term Life Insurance.

(2)- Notwithstanding anything contained in sub-rule (1), the Board may prescribe other

categories of the Life Insurance Business as required.

(3)- The conditions and privileges of the Life Insurance Policy to be executed pursuant to this

Rule shall be as specified by the Board.

For Non-Life Insurance Business-


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(1)- The Insurer may operate the following Insurance Business under the Non-Life Insurance

Business:

(a) Fire Insurance,

(b) Motor Insurance,

(c) Marine Insurance,

(d) Engineering and Contractor's Risk Insurance,

(e) Aviation Insurance,

(f) Miscellaneous Insurance.

(2)- Notwithstanding anything contained in sub-rule (1), the Board may prescribe other

categories of Non-Life Insurance Business as required.

(3)- The conditions and privileges of the Non-Life Insurance Policy to be executed pursuant to

this rule shall be as specified by the Board.


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INVESTMENT CRITERIA OF LIFE INSURERS


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Catego

ry of

Invest

ment

Investment Sector Investment

Percentage

Remarks

A Debentures of Govt.

& Central Bank or

Debenture/ Saving

Certificates

guaranteed by govt.

In any condition, not

less than 25% of total

investment should be

invested in Category

A.

B

(1) Fixed Deposit of

Commercial Bank

(2) Fixed Deposit of

Development Bank

(1) In any condition,

not less than 35% of

total investment

amount should be

Invested in FD of

commercial banks.

But it is not

prevented to invest

more than 65% in

Category A.

(2) Not more than

15% of total

Investment amount.

(1) Maximum of 20% of the

total investment amount can be

invested in the fixed deposit of

the same commercial bank

which has been in operation for

at least 3 years and has done

periodic audit and maximum of

5% of the total amount can be

invested on the basis of

appropriateness in case of the

Commercial bank which has not

reached 3 years operation.

(2) Maximum of 5% of the total

investment amount can be

invested in the fixed deposit of

the same development bank


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Whatever is mentioned above, Insurer needs to follow as below for

investment:

1. In case of term investment, upon maturity, reinvestment should be done as specified

above.

2. If debentures of Govt. and Central Bank or debentures/saving certificates guaranteed

by Govt. are not available, remaining part of investment to be made in those sectors

should be invested in FD of commercial banks and same should be informed to

Insurance Board.

3. In case of every new investment and renewal of investment, specified limitations

should be followed.

4. Investment should be made for overall benefit of the Insurer.

5. While determining the amount to be invested in FD of banks, the amount deposited in

the Call Deposit or any other interest bearing account of the bank should also be

counted.

6. While investing as per Insurance Boards directives, it should be done conscientiously

and failure to do so will hold the Board of Directors as responsible.

7. Banks scheduled by Nepal Rastra Bank of not having sufficient liquidity should not be

invested and should be withdrawn the past investment in those institutions.

Market Share of the Insurance Company

Public Sector 5%

Private Sector 95%


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NLIC Overview

Nepals Number one private life insurer, Nepal Life Insurance Company Limited is

established under the Company Act 2053 B.S. (1996 A.D.) and Insurance Act 2049 B.S.

(1992A.D.) as a public limited company on 2058/01/21 B.S. (04/05/2001 A.D.). NLIC is the

foremost life insurance company established by private investors. The promoters of the

company are a group of well known businessmen and business houses of Nepal. Within the

eight years of operation the Company has set up an excellent business record and has a strong

financial position.

The company has an. Issued Capital 500 Millions and Paid-up Capital 300 millions. Right

Share of 4:1 is in the process for offering to the share holders. Till March 2009 the company

has 2,07,077 insured worth Rs. 2208.79 Crore. Out of the total premium collected the company

has invested Rs. 328.78 Crore as per guidelines of Bima Samiti. The company has insured

itself with well-know reinsurance company "Hannover Re Life Reinsurance Company",

Germany and "SCOR Global Life ", Singapore.

Company started its operations in May 2001 after receiving approval from Beema Samiti

(Insurance Board), which is the Insurance Regulatory Authority of Nepal, The line ministry of

the Finance Ministry, Nepal. The company being only eight years old in Life Insurance

business special, efforts are being made to spot, recruit and train new agents not only in the

Academic part of insurance but also of marketing and servicing of insurance. For this purpose,


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the training sessions are being held at door steps of agents i.e. the 'Branch' and 'Centers' to

which they are attached. Concentrated attempts are being made to upgrade their knowledge, so

that they become our future assets and market leaders because only out of them will come our

future marketing personnel. The results so far achieved give us assurance that the company is

on sound and solid ground.

Service Performance

Personnel, office services, underwriting and accounting rules, work systems, procedures etc.

have been prepared/devised and put in operation. Even policy servicing rules and formats have

been prepared; they will be in use in the subsequent years. About 150 forms and formats

required for functioning of an insurance office and servicing of policies, agents etc. have been

prepared.

A number of jobs like, issue of acceptance letters, first premium receipts and policy bond and

preparation of adjustment books, commission bills, granting of loan and surrender of policies

have been taken on computer. The business data is also being generated on computer. The

software is the backbone of the insurance company and NLIC is fully automated.

Job description Time lag

Registration of proposal Day-to-day basis

Underwriting Day-to-day basis

Issuance of acceptance letter Day-to-day basisIssue of FRP Day-to-day basis

Issue of policy bonds Day-to-day basis

Commission billing Fortnightly/Monthly

We have been able to maintain a fairly good level of performance in servicing our clients

which can be seen from the following performance indicators. As on end of April 13, 2009

Company paid 442 death claims with total amount of Rs. 64,080,777. At the same time


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company also paid Survival Benefit of 2115 policies amounting to Rs. 7, 25, 13,394 and

Maturity on 58 policies amounting to Rs. 4,055,275.

Board of Directors

The board of directors consisting of chairman, and 4 directors, 1 public director, 1 independent

director is the governing body of the company. The operating

Wing of the company is headed by the Chief Executive Officer, in the corporate office. He is

assisted by two Deputy General Manager and departmental heads of underwriting and policy

servicing, finance, information technology, personnel and marketing.

The branch offices which are the operating offices of the company are headed by the branch

managers who are assisted by marketing and administrative staff in the office and by a network

of agents in the field. The company plans to reach every segment of the population

geographical, social, professional etc., so as to provide social security to every eligible citizen.

Corporate Office

After liberalization of economy and opening up of life insurance business in Nepal, Nepal Life

Insurance Company is the first company, which was granted license for transacting life

insurance exclusively. The company started its operation on May 4, 2001 (B.S. 2058/01/21)

Insurance Regularity authority board of Nepal

Beema Samiti (Insurance Board) is the Insurance Regulatory Authority of Nepal, The line

ministry of the Finance Ministry, Nepal. The word 'Beema' means 'Insurance' and 'Samiti'

connotes 'Board'. Hence, the Word 'Beema Samiti' is Synonymous to Insurance Board which is

constituted to systematize, regularize, develop and regulate the insurance business within the

country under Insurance Act, 1992. This Samiti (Board) looks after all the insurance related


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activities in the State of Nepal. As a regulatory body, the Board's main concern is to create a

professional, healthy and developed insurance market in Nepal

Furthermore, after the restoration of democracy in 1990 AD, insurance environment began to

change simultaneously along with other factors. Thus to meet the requirements of the changing

situation, Insurance Act, 1968 was repelled by new Insurance Act, 1992 (Beema Ain, 2049).

The preamble of the Act clearly states the purpose of the Act, thus "to establish an Insurance

Board to systematize, regularize, develop and regulate the insurance business". To achieve the

goal of the preamble, Beema Samiti (Insurance Board) is formed as an autonomous body the

Insurance Act of 1992.

Constitution of the Board

The Board is constituted under the Insurance Act, 1992, article 3. The form of the board is as

under. Nepal Government may make alteration of the member of the Board by publishing a

notification in the Nepal Gazette, if it deems necessary. The tenure of the nominated members

of the Board shall be four years. They may be re-nominated up to twice after the expiry of their

tenure.

Function, Duties and Power

1. In order to systematize, regularize, develop and regulate the insurance business in the

Kingdom, the following functions, duties and powers are conferred on Beema Samiti.

2. Provide suggestions to Nepal Govt. to formulate necessary policy for systematizing,

regularizing, developing and regulating the insurance business,

3. Set out guidelines for insurers to invest their fund and prescribe the priority sectors for

such investment.


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4. Register and renew the Insurer, Insurance Agent, Surveyor or Broker and to cancel or

cause to cancel such registration,

5. Arbitrate in the disputes, which arises between the insurer and insured,

6. Make decision on the complaints filed by the insurer regarding to the settlement of

liability of the insurance,

7. Issue necessary directives to the insurer from time to time regarding insurance business,

8. Formulate necessary basis of the protection of interest of the insured, and

9. Do or caused to do other necessary functions regarding insurance business.

NLIC Edge- What makes us No 1?

The NLIC edge comes from our commitment to our customers in all that we do- be it product

development, distribution, the sales process or servicing. Heres a peek into what makes us

leaders.

1. Our products have been developed after a clear and throughout understanding of

customers need. It is this research that helps us develop Education plans that offer

the idea way to truly guarantee their childs education, Retirement solution that are

hedge against inflation and yet promise a fixed income after their retire, or Health

insurance that arms them with the funds they might need to recover from the dreaded

disease.

2. Having the right product is the first step, but its equally important to insure that our

customers can asses them easily and quickly. To this end, NLIC has an advisor based

branches all over Nepal and perfectly trained agent team, which are working for the

well fare of the customer and to satisfy the consumer.


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3. Robust risk management and underwriting practices from the core of our business.

With clear guidelines in place, we ensure equitable costing of risk, and thereby

ensure a smooth and hassle-free claims process.

4. Entrusted with helping our customers meet their long term-goals, we adopt an

investment philosophy that aims to achieve risk adjusted returns over the long-term.

5. Our potential planning for the consumer like foreign visiting insurance plan makes us

No 1 in the insurance market in Nepal.

6. Last but not the least, our 15000 plus strong team is given the opportunity to learn

and grow, ever day in a multitude of ways. We believe this keeps them engaged and

enthusiastic, so that they can deliver on our promise to cover their, at every step in

life.

VISION AND VALUE-

To make NLIC the dominant Life and Pension player built on trust by world class people and

service.

This we hope to achieve by:

Understanding the needs of customers and offering them superior products and service

Leveraging technology to service customers quickly. Efficiently and conveniently

Developing and implementing superior risk management and investment strategies to

offer sustainable and stable returns to our policy holders.

Providing and enabling environment to forester growth and learning for our employees.

And above all building transparency in all our dealings.

To endeavor through the noble institution of Life Insurance in making every family

economically safe and secure whereby every citizen of Nepal may contribute his might in


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building a healthy, prosperous, strong & Vibrant Nation. To cater to financial and social needs

of every segment of society by designing differentiated and Innovative insurance instruments.

To provide after sales service to customers that can be hailed as the best.

The success of the company will be founded in its unflinching commitment to 5 core values-

Integrity, Customer First, Boundary less, Ownership and Passion. Each of the values describes

what the company stands for, the qualities of our people and the way we work.We do believe

that we are on the threshold of an exciting new opportunity, where we can play a significant

role in redefining and reshaping the sector. There are no limits to our growth.

Our values

Every members of the NLIC team is committed to 5 core values: Integrity, Customer First,

Boundary less, Ownership and Passion, These values shine forth in all we do, and have become

the keystones of our success.

How NLIC is differ from others?

Being in the business of selling life insurance it is performing the same job as the other

insurers dealing with "Life Insurance". However, Nepal Life Insurance Company has its own

identity because of the mission and manner for which it is working. The company is working

with a time bound strategy to fulfill its vision of spreading message of insurance to every home

and to contribute substantially in making Nepal an economically healthy and vibrant nation.

Apart from spreading the network of branches all over Nepal the company plans to make a

quantum jump in number of agents and to provide them adequate training for providing

knowledge and skill, so that the company can reach and depth in the market. The company is


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focusing on providing qualitative services of International Standard. Our ambition is to provide

across the counter services in all its operations.

This ambition cannot be fulfilled without the help of information technology. The company

has computerized most of its jobs from inception. In due Course of time, all its Branches will

be connected through wide area networking so that the customers can have access to policy

servicing from anywhere.

The company being only eight years old in Life Insurance business special, efforts are being

made to spot, recruit and train new agents not only in the academic part of insurance but also

of marketing and servicing of insurance. For this purpose, the training sessions are being held

at door steps of agents i.e. the 'Branch' and 'Centers' to which they are attached. Concentrated

attempts are being made to upgrade their knowledge, so that they become our future assets and

market leaders because only out of them will come our future marketing personnel. The results

so far achieved give us assurance that the company is on sound and solid ground.

Promoters

Nepal Life Insurance Company Limited is well known and popular business man of Nepal.

NLIC is the fully Nepali owned company, means this insurance company is established by

Nepali citizen. Out of 30 Crores is paid by well known businessman and remaining 5 crores by

issuing shares.


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FACT SHEET-

The company

Nepal Life Insurance Company Limited is fully Nepali owned Insurance company in Nepal

which is looking Life Insurance sector in Nepal since last eight years. Its head office is at

Kathmandu Firstly company is started its business from capital city Katmandu. The 1st branch

office of the company started its operation on the same day at Kathmandu. NLIC is the first

private sector insurance companies in Nepal begin its operation at 2058/01/21 (04/05/2001)

after receiving the approval from Beema Samiti (Insurance Board), which is the Insurance

Regulatory Authority of Nepal.

NLIC is established under the Company Act 2053 and Insurance Act 2049 as a public limited

company on 2058/01/21 (04/05/2001). NLIC is the foremost life insurance company

established by private investors. The promoters of the company are a group of well known

businessmen and business houses of Nepal. Within the eight years (till August 2009) of

operation the Company has set up an excellent business record and has a strong financial

position.

The company has an authorized capital of Rs. 100 Crore. Issued Capital of Rs 50 Crore and

Paid-up Capital of Rs 30 Crore. Right Share of 4:1 is in the process for offering to the

shareholders. In the current year the company (NLIC) has sold highest number of Life

Insurance Policies in Nepal.

Business Performance Report of NLIC(2008)


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Name of the company No of policy Percentage

Nepal Life Insurance Co. (NLIC) 98,000 37

Life Insurance Corporation of Nepal (LIC) 51,000 19

Asian Life Insurance co. 44,000 17

Nation Life insurance Co. 26,000 10

American life insurance Co 20,000 8

Prime Life Insurance Co. ltd 10,000 4

Rastriya Bima Samsthan 8,000 3

Guras Life Insurance Co. ltd 4000 1

Surya Life Insurance Co. Ltd 3000 1

Total Policy sold 2,64,000 100

In Percentage

Distribution


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Nepal Life Insurance Co. has one of the largest distribution networks amongst private life

insurance Co. in Nepal. As July 2009 the company has 43 offices across the country and over

20,000 advisors. The 1st branch office of the company started its operation on the same day at

Kathmandu.The company has opened 18 more Branches at Biratnagar, Birgunj, Butwal,

Pokhara, Banepa, Narayanghat, Nepalgunj, Birtamod, Lahan, Janakpur, Mahendranagar, Dang,

Surkhet, Hetauda, Urlabari, Phidim and Dhangadi. And 26 sales centers Sindhuli, Lamjung,

Rukum, Damak, Chandranigahapur, Gorkha, Rajbiraj, Nuwakot, Dadeldhura, Baglung,

Baneshwor, Kalanki, Balaju, Patan, Kawasothi, Magdhi, Guleria, Palpa, Arghakach, Puthyan,

Sindhuli, Mugu, Rolpa, Humla,Katari and Gulmi.

The Co. has provided the investment opportunity to that district where other investment

opportunities are not possible like Jumla, Kalikot as well as Karnali Zone etc. This can be

possible due to the well distribution and well management of the company. Company got

success in this fiscal year (2008-2009) for sold maximum number of Life Insurance Policies in

Nepal which is near about double than the last fiscal year. These achievements can be done by

the company due to the good and active distribution network.

PRODUCTS

Insurance Solutions for Individuals

Nepal Life Insurance Co. offers a range of innovative, customer centric products that meet the

need of customers at every life stage. The products are searched and launched on the basis of

demand of time. Company has started a newly developed plan for those people who want to

visit abroad for any purpose. These kinds of steps are innovative steps in the field of life

insurance in Nepal.


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Surakshit Jeevan Beema Yojana

It is an endowment plan. It can be taken by anyone in the age group between the ages of 11

years to 60 years. The maximum age on maturity is 65 years. Under this plan the policy money

with bonus is payable at the end of the specified period or on death of the life assured before

expiry of the term. This is the most popular insurance plan. By selecting the term judiciously,

one can provide for old age and get risk cover for the selected term. Under this plan one can

get loan up to 90% of the surrender value after the policy has run for a minimum Two Years.

Minimum Sum Assured under this plan is Rs. 25,000. The premium under this plan can be paid

Yearly, Half-Yearly and Quarterly basis.

For example a person aged 30 years going in for insurance under this plan for 20 years for

Sum Assured 1 lakh will have to pay annual premium of Rs. 4,896/-. He will get Rs.1 lakh

plus bonus at the end of the term. In case of earlier death his nominee will get Rs. 1 lakh plus

bonus thereon subject to all premiums having been paid.

Sukhamaya Jeevan Beema - Without Profit

This plan has been designed to help in lifting the financial burden which generally occurs

during the festival season of the year.

Benefits payable under this plan:

a) 2% of Basic Sum Assured payable on each Durgapuja under enforces policy. The first

installment will be paid after 6 months from the date of commencement.

b) 50% of the Basic Sum Assured irrespective of earlier payment is payable on maturity

date.


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c) 100% of the Sum Assured payable in case of death of the life assured within or after

term of the policy.

d) Minimum Sum Assured Rs. 100,000 and maximum no limit.

e) Minimum entry age is 18 yrs and maximum entry age is 55 yrs

f) Minimum term is 5 yrs and maximum term is 42 yrs

g) Maturity Age is 60 yrs.

h) Policy will not participate in profits

Dhan Varsha Beema Yojana

This is an innovation on endowment policy. The proposer can select term of 15 or 20 years.

Under the 15 years plan, periodical payments are made as under- 25% of S.A. at the end of 5

years. 25% of S.A. at the end of 10 years. 50% of S.A. and bonus on Full Sum Assured at the

end of the term. Under 20 years plan, the periodical payments at the same rate are made at the

end of 10 years, 15 years and 20 years. In case of death "Full Sum Assured" and "Bonus on

Full Sum Assured" is paid under both the plans and the periodical payments made prior to the

date of death are not deducted from death claim. It means that the actual risk coverage under

the plan is 150% of the Sum Assured. Minimum Sum Assured under this plan is 50,000.

Giving the example of proposer aged 30 years again he will have to pay annual premium of

Rs. 4,131 under table no. 21 (15 year anticipated plan) and Rs. 3,014 under table no. 22 (20

years anticipated plan). The premium under this plan can be paid yearly, half yearly, quarterly

and monthly basis

Double Accident Benefit


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One can avail double accident benefit for an amount up to Rs. 4 lakh by paying a nominal

amount of Rs.1=00 per thousand. This facility is provided through additional contract.

Group Insurance Plan

This plan enables employers to provide life insurance benefit to their employees at low rate of

premium. It is a hassle free plan wherein risk coverage is given up to the normal retirement

date without any health requirements up to age 45 and with only declaration of good health

thereafter. The savings made through the simple scheme of administration is passed on to the

employees by substantial reduction in premium.

The minimum age at entry is 18 years and maximum age at entry is 55 years. The S.A.

allowed varies from Rs. 50,000 to Rs. 3,50,000 depending upon the category. The group size

of 50 employees, contribution of minimum of 50% of premium by the employer, joining of the

scheme by a minimum of 75% of confirmed employees on introduction and compulsory

joining by employees recruited thereafter are some of the binding features of the scheme.

Variations in the scheme and its benefits are possible depending on the size and composition of

the group and participation of the employer. The company is trying to sell the above products

in large scale so as to fulfill its mission of providing social security to every eligible citizen and

also for spreading and creating awareness about the need of insurance. With increase in

insurance awareness among the general public and specific target groups the company plans to

bring in new products having greater risk/term insurance components. It also plans to bring in

products providing pensions, health care and plans with multiple add on/optional advantages

and risk covers.

Surakshit Bhavishya


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It is a mortgage redemption plan. It is suitable for the institutions giving loan and the persons

availing loan. It is a limited payment term insurance plan wherein risk is covered for the

specified period at a nominal premium which can be paid in a single installment or in yearly

installments for 2/3rd period of loan. The risk coverage will be approximately equal to the

outstanding equated loan installments on the first day of the year. This coverage will get

reduced in the subsequent years by the amount of equated installments falling due before the

commencement of the New Year which is supposed to have been paid by the lender.

Example: - Age 30 years, Loan/insurance amount 1 lakh

Mode of payment Term of loan

5 years 10 years 15 years

i)Single Premium (i)* (ii)* (i)* (ii)* (i)* (ii)*

1421 1458.50 2711 2854 4134 4430

ii)Yearly Premium payable for 3 years payable for 6 years payable for 10 years

513.50 527.00 518.00 545.50 518.00 555.00

Note: (I) Interest rate 10% or below (ii) above 10% to 15%

The plan provides risk coverage at negligible cost ensuring recovery of loan for the lender in

case of death of the person taking loan. The plan provides financial security to the person

taking loan and to his family and ensures that the asset created by him through loan does not

become liability in case of unfortunate demise of the person before expiry of loan period.

Keta-Keti Jeevan Bima (Shiksha and Vivah)

Every parent dreams for better education marriage and successful life for their offsprings. In

this context, Nepal Life Insurance Company for the first time in the Insurance Industry of the

country launched a product with the sole aim of providing a tool of having risk coverage of life

of child and making future provision for the education, marriage and financial support for the

wards of aspiring parents. The salient features of plan are:


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Policy can be issued on the life of just-born child till age of eleven, proposed by either of the

parent.

a. The risk on the life of child to start after completion of 7 years of age of child, if his her

age is below 7.

b. In case of child who has completed his age 8 or 9 the risk shall commence from age 10.

c. Minimum Sum Assured Rs. 100000 and maximum Rs. 1000000.

d. The term of this policy is 19 minus age of child at commencement of policy.

e. Maturity age 19 year of child(fixed)

f. The policy vests in the child at 18 years of age.

g. Policy premium frequency: Either yearly, Half Yearly or quarterly with certain

conditions.

h. Premium waiver Benefit available on the life of proposer (either of parent only) with

extra payment.

i. Surrender as per condition but no loan available.

j. No accident benefit available on the life of child.

k. Policy participates in profits.

Chhora-Chhori (Agrim Bhuktani Sawadhik Jeevan Bima)

The plan is an improved version of Dhan Varsha (Money Back) Yojana. It has specially been

designed to provide financial support for higher education and start in life of the child. Main

features are:

a. Policy can be issued on the life of just born child but risk to commence after

completion of 7 years age of child.


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b. In case of child being ensured has completed either 8 years or 9 years of age, the risk

on his life to start after 10 year of age.

c. The term of the policy is 19 minus age of child at the commencement.

d. The policy shall vest in the life of child at age 18.

e. The first installment of payment of 20% of S.A. shall start at age 18 and thereafter

every year at 20% rate for 4 years up to age 22 of the child with bonus if any with last

installment.

f. Minimum sum assured is Rs. 50,000 and maximum Rs. 10,00,000.

g. Benefits like premium waiver start in life and cash option can be availed with certain

conditions.

h. In spite of the facts that periodical installments are paid, the risk on life of the child

remains for full sum assured.

i. The frequency of policy premium payment is either yearly or half yearly or quarterly

with certain conditions.

j. Surrender but not loan allowed with conditions.

k. No accident benefit available on the life of child.

l. Policy participates in profits.

Jeevan Laxmi- Triple Benefit Scheme with Bonus.

The plan is the Triple Benefit Endowment Plan with Bonus payable on the following terms:

Basic Sum Assured with bonus payable on maturity

a. Two times of Basic Sum Assured with proportionate final bonus payable on normal

death under enforce policy within policy term.


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b. Three times of Basic Sum Assured with proportionate bonus payable in case of

accidental death under enforce policy within policy term.

c. Minimum Sum Assured is Rs. 50,000 and maximum Rs. 100,000

d. Minimum entry age is 16 yrs and maximum entry age is 50 yrs

e. Minimum term is 7 yrs and maximum term is 25 yrs or maximum age of 60 yrs

whichever is earlier.

Jeevan Sahara

The plan is specially designed Endowment product to cover the wide range of risk for our

social communities of Nepal:

The sum assured together with bonus is payable on maturity date and full sum assured again

payable on death of life assured after maturity.

a. In case of death before maturity date under enforce policy, the sum assured and

whatever bonus declared is payable.

b. Basic Sum Assured is payable in case of death of the policy holder after maturity of

policy term.

c. Minimum Sum Assured is Rs. 100,000 and no limit for Maximum Sum Assured

depending upon the income source of the proposer.

d. Minimum entry age is 16 yrs and maximum entry age is 65 yrs.

e. Minimum term is 5 yrs and maximum term is 54 yrs or maximum age of 70 yrs

whichever is earlier.

f. The mode of payment is yearly, half yearly or quarterly.


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Customer

Whom to approach for insurance?

Insurance proposals are accepted by 'Branch Offices', 'Sales centers' and 'Corporate office' of

the company. One can, therefore, always approach these offices for purchasing insurance on

one's life. The marketing officials of the corporate office, 'Branch Manager' and 'Agency

Manager' will be ever ready to help.

Basic requirements for insurance

For buying insurance on any one's life the proposer should have insurable interest on the life of

the assured. Insurable interest cannot be determined in terms of moral responsibility of one

person for the other. It is determined by the monetary loss one will have to bear in case of

death of the other. Some example of insurable interest is given below.

1. One's on his own life.

2. Husband and Wife on the life of each other.

3. Parents and Children on the life of each other.

4. Employer on the life of employees.

5. A lender on the life of a debtor.

6. Business partners on the life of each other equal to the partner's investments in

business.

Apart from the insurable interest the proposer should be

a. Legally competent to enter into a contract.

b. Financially capable to pay premium for the "Sum Assured Proposed".


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c. And there should not be anything adverse in his 'Health', 'Habit', 'Occupation' However,

insurance can be given by charging extra-premium if there is anything adverse in

health, habits and occupation within the permissible parameters.

On fulfilling the above eligibility conditions one has to submit the following requirements

for obtaining insurance

a. Proposal form

b. Personal statement of health

c. Age proof

d. Medical report and special medical and pathological reports depending on the sum

proposed, personal history and family history.

e. Proof of income if the sum proposed is large.

f. Deposit amount equal to first premium.

g. Previous insurance particulars.

h. Particulars of insurance on the life of husband if the life to be assured happens to be of

wife does not have earned income and of parents if he/she is a minor.

Basic requirements for insurance and its continuity-

a) Premium should be paid within grace period of 30 days. It is however, accepted up

to 6 months by charging interest. Thereafter premium is accepted only after evidence

of good health and medical reports are submitted and found in order. Within first

two years of policy it is necessary to pay the premium within grace period of 30 days

for risk cover.


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b) It is advisable that nomination is made at proposal stage itself. If it is not made then

it can be made subsequently also. If the nominee is a minor, appointment of

appointee should be made. Nomination can be changed or cancelled anytime.

c) Duplicate policy can be issued on payment of policy preparation charges and

fulfilling the legal requirements. It is advisable that Policy Bond is kept in safe

custody.

d) Age admission is necessary as premium is based on age. If age has not been

admitted at proposal stage it should be got admitted at the earliest, so that there is no

delay in claim payment.

e) Policy bond, discharge form and last premium receipt have to be submitted for

maturity claim payment.

f) For surrender value and loan payments also policy bond is necessary. Application of

the policy holder, discharge form and last premium receipts also are required. In case

of loan, loan agreement also has to be executed.

g) For death claim payment we require an intimation of death by the nominee/legal

heir, death certificate, certificate of cremation, death claim form and discharge

voucher. In case of early death within two years of Commencement of policy or

revival of policy, some additional requirements also are called for, such as attending

Doctor's report, hospital report, employer's certificate etc. Succession particulars

and/or certificate is required if there is no nomination or the nominee has expired. If

there are rival claimants the company will go by the judgment of a court of

competent jurisdiction.

NLIC current investment (NLIC city center)-

Nepal Life Insurance Company (NLIC) commenced operation of NLIC City Center, a

commercial mall built by the company at Kamalpokhari. The Shopping Complex stands five


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storeys high, is fully air-conditioned, and has a multiplex cinema, supermarket and a wide

range of international brands.

The mall of international standard has 125 showrooms and retail outlets of popular

international branded commodities, says a press release. It also houses 15 restaurants and

offers separate playing areas for children. Speaking on the occasion, senior officials of NLIC

said that the company would develop more commercial complexes in the city with due

permission of the Insurance Board for generating sound returns for its policy-holders and

investors. The company says such projects would also contribute to consumerism, tourism and

employment creation

ADMINISTATIVE TEAM-

The Nepal Life Insurance Co. Limited administrative team is perfectly established group of

well known businessman of Nepal and knowledgeable governing body for Nepal Life

Insurance Company Limited. The group is filled by the experienced body whose experience is

weapons for Nepal Life Insurance Company Limited for competiting other company in the

field of Life Insurance sector and also energetic member whose energy is the cause of getting


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the rapid speed by the NLIC within the shorter time of eight years. The member of the

administrative team are-

Mr. Purushotam Lal Sanghai

Chairman

Nepal Life Insurance Company Limited

Mr. Sanghai, Chairperson of Nepal Life Insurance Company, is the chairperson of prestigious

"Triveni Group" of companies having a chain of industries and commercial companies. He is

one of the most prominent industrialist and businessman of Nepal. He is also actively involved

in a number of social welfare activities.

Mr. Govind Lal Sanghai

Managing Director


Mr. Sanghai, is Executive Director in the renowned business house "Triveni group" which iis

the leading Industrial and Business Group of Nepal operating in International Marketing,

Manufacturing plants, Real Estate, Finance and Bank, Tea Garden etc. He also holds the

position of director in Annapurna Vegetable Products P. Ltd., Vishwokarma Cements P. Ltd.,

Shree Pashupati Cements P. Ltd., Triveni Dal & Oil Industries P. Ltd. and Nepal Tea

Development Corp. Ltd.

He is corporate advisor in Prudential Insurance Co. Ltd. He is National Council Member in

Confederation of Nepalese Industries (CNI). He is also a member of European Chamber of

Trade, Commerce & Industry- Nepal and German Chamber of Commerce & Industry.

Mr. Ganga Bahadur KC


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Director


Mr. K.C. is a renowned Executive of Nepal. He has been the Chairperson of Nepal Insurance

Co., Director of Nepal Bank and Nepal Industrial Dev. Corporation, Director of Biratnagar

Jute Mills, Director of Morang Sugar Mills. A present he is a Sub-Committee member (Life) of

Beema Samiti Nepal.

Mr. Ram Avtar Agrawal

Director


Mr. Agrawal is an Engineer by profession. Prior to his retirement from the service of His

Majesty's Government he held the post of Executive Director of Water Energy Commission

and the Project Manager of a number of Irrigation Projects of Nepal. He is actively associated

with a number of social service organizations working in Katmandu and other parts of the

country. He holds prestigious Gorkha Dakshin Bahu award for outstanding works in

Chaurjahari Tar Irrigation Project at Rukum District.

Mr. Ramesh Gupta

Director


Mr.Gupta is promoter and shareholder in Mahalaxmi Finance Ltd., Prudential Insurance Co.

Ltd. and Hams Hospital. He has bussiness affiliation with Ganapati Vanspati P. Ltd., Lumibini

Industries P. Ltd., Lumbini Vidyut Udyog P. Ltd. and Nuplast Industries P. Ltd. He is also

associated with Lucky Nepal Co. P.Ltd. and Universal Trading Centre.


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Mr. Kamlesh Kumar Agrawal

Director


Mr. Agrawal has been a Public Director of Rastriya Beema Sansthan and Chairman of Nepal

Foundary Industry Limited.Currently he is Managing Director of Robin Traders P. Ltd., Jayant

Plastics Industries, Robin International P. Ltd., Robin Commercial Center, Robin Foaming and

Paper Products P. Ltd. He is Executive Member of Nepal Rastriya Marwari Parishad,Agrawal

Sewa Kendra,Nepal Chamber Of Commerce and Life Member of Marwari Sewa Samiti,

Katmandu.

MANAGEMENT TEAM

Mr. Manoj Kumar Bhattarai

Chief Executive Officer


Mr. Bhattarai, holds Masters Degree in Business Administration and Commerce (Specialized

in Accountancy with Finance, Audit, Statistics, Personnel management, Corporate planning)

from Tribhuvan University. He has gained valuable experiences from national as well as

international organizations. He has undertaken trainers training on Faculty Development

Program conducted by Manila based Asian Business Consultants (ABC). Before joining NLIC


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he was working for Enabling State Program (ESP), a development program under Department

for International Development (DFID) Nepal as Finance and Admin Manager.

He worked in various departments and branches of Nepal Industrial Development Corporation

(NIDC) for about twenty years. He was awarded with Best Performing Staff Award of NIDC

in 1995. Mr. Bhattarai had served as UNV Specialist Management Advisor under United

Nations Developments Program (UNDP) in Malawi for Ministry of Local Government of

Malawi. He is involved as Resource person and faculty for Kathmandu Frontier Associates

(KFA), Bankers Training Center, Nepal Rastra Bank and various training institutes and banks.

He was also involved as visiting faculty for Kathmandu College of Management (KCM),

Kathmandu University and Apex College, Pokhara University.

Mr. Bhattarai has ample experience of conducting seminars and workshop for Enabling State

Program (ESP) / DFID Nepal, Alternate Resource Centre (ARC), Westminster Foundation for

Democracy U.K. Foundation for Development Management (FDM), Save the Children US,

and Management Association of Nepal (MAN), Nepal Industrial Development Corporation

(NIDC), Management Research and Training Academy (MRTA) Nepal, Lutheran World

Federation (LWF) Nepal, UNICEF Nepal, Nepal Tourism Board, Salt Trading Corporation

Limited Nepal, NGO Federation Nepal, Dalit Empowerment and Inclusion Project (DEIP)

Nepal as a facilitator/resource person. He conducted workshop for Nepal Tourism Board.

Mr. Bhattarai also completed various research and studies in the capacity of consultant/team

leader for research study projects of Social welfare Council, Foundation for Development

Management (FDM), Lutheran World Federation (LWF/N), United Nations Office for the

Program Support (UNOPS), Department for International Development (DFID) Nepal,

Institutional Reform and Informal Sector (IRIS), University of Maryland, USA, Management

Research and Training Academy (MRTA). Mr. Bhattarai is a life member of Management


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Association of Nepal (MAN), Nepal AOTS Alumni Society (NAAS) and Child Development

Society (CDS).

Mr. Sushil Kumar Chaudhary

Deputy General Manager


Mr. Chaudhary holds Masters Degree in Commerce (M.Com). He has a long experience of

insurance marketing. Before joining NLIC he worked as an agent for other insurance

companies for more than 10 years. He joined Nepal Life Insurance Company as a Branch

Manager of Biratnagar Branch in June 2001. Before joining NLIC he was working as a

Manager in Rastriya Banijya Bank Limited.

Mr. Agam Mukhia

Divisional Manager


Mr. Mukhia joined Nepal Life Insurance Company as a Manager in Information Technology

department. He has been persistently involved in the Development of the software since the

establishment of the company. He led the development team in analysis, development and

implementation of the insurance software which is currently being used at Nepal Life

Insurance Company Ltd. He has a rich experience in software programming, web based

programming, data mining and data analytics. He was working as a data analyst for

D2hawkeye (www.D2Hawkeye.com) an American Data Mining and Software Development


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Company. He joined D2Hawkeye Company as a senior database engineer and worked for 2

years and 9 months before joining Nepal Life Insurance Company Ltd.

He started his career as an e-Commerce Programmer from Mercantile Communication

(www.mos.com.np) and later promoted to software programmer. As a software programmer

he was a team member to develop and support the Banking Software (PumoriPlus) and Office

Automation Software (PumoriOffice). As a Freelance programmer he has also developed

software like Micro Insurance (medical insurance software) for International Labor

Organization and Educational Consultancy Software (being used by renowned consultancies in

Katmandu). He holds Masters Degrees in Physics and Computer Applications.

Mr. Kamal Panthi

Divisional Manager


Mr. Panthi holds Masters Degree in Business Administration. He worked as Manager in

Gorkha Finance Ltd., Hattisar, and Kathmandu for 6.5 years as Manager. During the tenure of

work in Gorkha Finance, he worked in various capacities as head of Account, Finance, System

and Operation Departments. He also has the experience of working in Ministry of Information

& Communications as a Database Administrator for 2 years. He has acquired various

Management, Computer Software/Hardware Trainings. As a Consultants he provides various

training in Management and Computer Software Developments. Currently, he is in-charge of


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300 Millions Multiplex Buildings Project at Kamalpokhari. He is also responsible for the

Investment and Operations of the Company.

Mrs. Usha Pant

Manager


Mrs. Pant holds Masters Degree in Political Science. She has a rich experience of working in

Rashtriya Beema Sansthan for 26 years in the areas of Policy Servicing, Underwriting, Group

Insurance, Claims and Reinsurance. She has under taken - 10 weeks Life Insurance Training,

College of Insurance, Mumbai

1 week Life Insurance Training on Market Strategy, National Insurance Academy,

Pune, Mumbai.

1 month of Management Training in Central Bank of Nepal She has also visited many

life insurance companies in Philippines during her tenure of service at Rastriya Beema

Sansthan.

Mr. Rameshwor Shrestha

Manager


Mr. Shrestha holds Masters Degree in Business Administration and Commerce. He has seven

years of experience in Nepal Life Insurance in the areas of overall financial Management,

underwriting, Insurance marketing, Agent Training, accounting. He has good experience in

financial areas of Life Insurance and related matters.


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He has undertaken Leadership for Business Excellence Training conducted by Institute

of Bank of management.

TDS installation Tax and Income from Remuneration training, Charter Institute of

management and Accountant Pvt. Ltd.

Nepal Accounting Standard training, Charter College of Management and Accountant

Pvt. Ltd.

Office management training program conducted by Management Association of Nepal.

Omprakash Pudasaini

Manager


Mr. Omprakash Pudasaini holds Masters Degree in Business Administration. He has gained

valuable experiences in the field of trade and commerce. Before joining NLIC he was working

in Nepal Chamber of Commerce (NCC) as Joint Secretary. During his stay at NCC he has

represented the office in various forums and taskforces and he was exclusively looking after

Revenue, Import, Export and Industry committees formed under the NCC Executive board. He

has experience on preparing proposal on economic issues and to conduct impact study of

various fiscal policy and business related legislations. He joined Nepal Life Insurance

Company Ltd. as a Company Secretary Mr. P

Documents

Nlic Project Work Report From Eashwari Bhandari(ABIMS)