The First Insurance Company of Nepal – Nepal Insurance Company Ltd
Established on the initiative of Nepal Bank Limited in the year 2004 B.S, the license of the then Consignment and Insurance Company Limited of the then Consignment of the Consortium on the 16th of Baisakh, 2006 was certified by the then Industry President Vijay Shamsher. Birgunj cotton mill, Biratnagar Cotton Mill, Raghupati Jute Mill were also established in Nepal during the reign of Rana around 2003 B.S.
An insurance company was needed for unpredictable indemnity in large investment industries while capital insurance was compulsory when the bank gave loans to industry businesses. At that time some insurance companies in India were providing life insurance services. With the initiative of Nepal Bank Limited, the consignment, and the insurance company was established in the year 2004 with 5 lakh principal funds. Later, in the year 2016, the company was transformed into Nepal insurance & transport company limited.
In 2048, the company was transformed into Nepal Insurance Company Limited and continued its operations. At that time, Nepal bank limited had played a leading role in buying the company’s capital at a fixed rate of 5,00,000 while another Rs 1 lakh per share was sold in the rules of the then Nepal Insurance Company Limited to be sold to the general public. It includes the same certificate as in the case of the first investor with the bank. Hallmark gold per Tola at that time was Rs 85 and insurance per share was kept at Rs 10.
The then and current financial situation can be compared now. In addition to the Nepal bank limited to invest in it at that time, Govinda Prasad Gorkhali (government employee) purchased 100 unit shares, Siddhidas Shrestha (Trader) purchased 15 hundred units of shares, Girjalal Shrestha (trader) purchased 500 units of shares.
At that time, it was arranged to pay a 2% commission to the arbitrator. For example, a line like this is mentioned –
“The company will even give a brokerage commission without having to pay the shareholder for advice.”
“ शेयरको ग्राहक तसल्लाह गरी दिने मानिसलाई सयकडा दुईमा नबढाई दलाली कमिसन समेत कम्पनीले दिन पाउनेछ|”
Thus, the first insurance company to operate in the writ of Nepal, which has been doing non-life insurance business to date and operated under the name of Nepal Insurance Company Limited. Thus in the development of human civilization, the number of life insurance companies has increased to 20 after 2046. Different insurance plans were implemented in competition with many such insurers, which were in the interest of the insurer and the customer category. As a result, investor confidence in expanding the business sector has a positive impact on the social sector as well. Trust and probability are key factors in the theory of insurance business.
Life insurance is being developed to compensate for the loss. This type of indemnity can be termed as assistance, which is called the principle of indemnity or principle of cooperation. This is prevalent in a cooperative manner, as many individuals and companies are charged with collecting insurance charges and the future is secured, in which the risk of loss is shared.
By ensuring the principle of the probability of insurance, the indemnity of the insured is possible through cooperation with the insurer. On the other hand, the potential of undertaking business is high if the risk is taken because the risks of fire, earthquake, vandalism, flood, damage, etc are born by the insurer. But the companies must mandate the insurance premium/ fee for that title.
Insurance is a rewarding business. Such a reward can be a profit. Insurance is a contract and is considered a business. Both parties are insured on a trust basis but must pay a premium for insurance. Also, the information must be submitted to the insurer without deception. The contractual points between the insured and the insurer must be clear. According to the Contract Act 2056, a contract is a legal agreement between two or more parties for the purpose of doing or not doing any work.
Nepal Insurance company Ltd currently has an authorized capital of Rs. 2,00,00,00,000; Issued capital of Rs. 1,09,55,36,652.69 and paid-up capital of Rs. 1,09,55,36,652.69. It has extended its service nationwide through 47 different branches. Currently, it provides the following policy services:
- Property Insurance
- Motor Insurance
- Home Insurance
- Micro Insurance
- Engineering Insurance
- Aviation Insurance
- Marine Insurance
- Miscellaneous Insurance