Nepal Insurance Act 2079 PDF English Notes

About the Insurance Act 2079

[Welcome to the Insurance Act 2079 Notes in pdf which has been prepared by the EMBF Mission. The Notes are at the bottom of this article. But you are recommended to go through this article so as to get familiar with the notes. This Article is a type of User Manual for the Super Summary Notes]

The “Bill Related to Insurance” was finally passed by the parliament after 4 years of being presented.

Name of the Bill was “The Bill made to amend and consolidate laws related to Insurance” and after being assented^[1] by the President, it came into force as the Insurance Act, 2079 (IA79).

With the enforcement of the act, the former Beema Samiti (which was often called “Insurance Board”) got transformed into Nepal Beema Pradhikaran ~ बिमा प्राधिकरण (which can be translated as “Nepal Insurance Authority”, but it must be remembered that the law has not provided any english name for Beema Pradhikaran).

Important dates related to the act are as follows:

Particulars	Date
Registered in HoR	2075-03-27
Passed by HoR	2079-06-23
Came into enforcement	2079-07-22

Laws repealed by the Insurance Act, 2079 (IA79):

• Insurance Act, 2049
• Rastriya Beema Sansthan Act, 2025 ~ The Rastriya Beema Sansthan (RBS) (Which can be translated to english as “National Insurance Corporation|), which is a life insurer, and was established under this act. Now this act has been repealed and a time of one year is provided to RBS to convert into a company and also to float shares to the public and also it has obligation to increase it’s paid-up capital to Rs. 5 Arba (Rs. 5 Billion) which is the Minimum Paid-Up Capital (PUC) of a Life Insurer as set by then Beema Samiti (Now Beema Pradhikaran). It’s current PUC is only Rs. 18.1 crores (Rs. 181 million). Audit of RBS for many years also has not been finalized either.

Course Content for Students of CAP-II and CAP-III of The Institute of Chartered Accountants of Nepal (ICAN):

• For CAP-II Students: ICAN’s notice dated 13^th March, 2023 AD prescribes content coverage upto section 97 of this act.
• For CAP-III Students: Whole of the Insurance Act, 2079 is to be covered by the students.

Are You Remembering section numbers ?

Don’t go on to remember the sections along with section numbers as your primary objective. You must assess your time and effort to be invested in roting down the section numbers and analyse if that time and effort can be given towards preparing your very own notes. We do not recommend you to focus on the section numbers, it’s best you focus on the content of that section or rule. You need to know the content of the section or heading or topic, what it wants to say. If you get it then you will secure good marks. So, consider your efficiency and effectiveness when roting down the section numberings.

About the Super Summary Notes :

• The Glossary and Chapter List have already been included inside the main pdf not. But, they have also been provided separately because there are total of 158 abbreviations / short forms used in the notes, so glossary will be needed very often. 
• “Unofficial English Translation” is written in the footer of the document because law in english is never official in Nepal since the federal parliament, the province assemblies and the local assemblies never draft and approve laws in English Language. Nepali is the official language of Nepal, laws are made in Nepali, interpreted in Nepali, all legal proceedings and processes involve everything in Nepali language and also during the translation from Bare Nepali Laws to English, the usage of words differ from one author to another, which is okay due to the freedom of selection of words. Even the Nepal Law Commission puts a header “Unofficial English” on the right side of the english version of any legislation. The same has been used here to remind you of the matter. It’s just for the sake of CA course that laws have to be read and exams given in English. If you need to work in real world, you need to have a good grasp over reading and interpretation skills in Nepali, which of course can be developed over time. But in India, laws are made in English, so reading and writing about laws in English is useful there, not in Nepal practically.
• The first column of the note is Section Number, second column is Heading, third column is Elaboration and the fourth column contains Comments or Remarks from the EMBF Mission.
• In few places, comments section consists of wordings like “some Nep to Eng translations of the act contains” is used to not let you go into confusion while reading some Nepali Bare Acts to English translations by respected authors/ faculties where somewhere there are errors and somewhere the choice of word is different but the meaning is same because Nepali language is very rich and a single word can have multiple corresponding translations in English
• “Chief Executive” or “Chief of Execution”(CE) has been used all over the document because the definition of CE in section 2 explains that CE means the CEO appointed u/s 57 who has received the responsibilities of conducting the administrative, managerial or business operations of the insurer. But in section 57 of the act, the word CEO is not used, only the word CE has been used, so it is trying to convey the person responsible for execution of the company and not prescribe a separate designation as a CEO. This means that the Board of Directors can prescribe any qualified person as the Chief of Execution of the company whose designation may be CEO or General Manager or Managing or Executive Director or Executive Chairmain.
• Chapter 19 [Actions, Offenses & Punishments] of the act is not included in this notes
• “Do or cause to” has been used in the note to denote “do or cause to do something by any means or by anybody else”. This wording is used in shortcut to make the summary as short and small and easy as possible
• Words like “may” or “can” and “shall” are highlighted (bold + underlined + italics used in combinations) to put emphasis on the point that whether that action / activity should be compulsorily done or whether the entity / person / body / agency “may” do it if it wants to something said by law
• The name of the directives, manuals, guidelines, procedures in the remarks column of the notes are issued by the former Beema Samiti
• Remember that there is no requirement for exact, rigid and specific word-to-word translation. You can use wordings which you feel easy with and can give the meaning as the law has intended to provide. Usage of complex legal wordings is needed only somewhere. So, the note here has tried to simplify the legal language by breaking it into various lines, presenting in bullets & numbering, etc. which shrinks hectic and lengthy sections, subsections and clauses into small but super summary notes.

So what’s the benefit of studying laws in english?

The first benefit is that, you will be expanding your vocabulary with plenty of English and Latin legal words and you might also be able to (1) draft reports, (2) pass on advices in English language to your non-Nepali clients or to those who require English by default. But, in order to be able to do so, you need to go through the authentic bare Nepali legal document to confirm what piece of legal information you are passing out. The acts passed by the federal parliament, orders and ordinances issued by the government, regulations passed by the government, various important governmental decisions, etc. are authentic when they are published by the मुद्रण विभाग (Department of Printing of the Ministry of Communication and Information Technology of the Federal Government [Government of Nepal]) in the नेपाल राजपत्र (Nepal Gazette). Also, remember that there are Provincial Gazettes for each of the seven provinces and also Local Gazettes of each of the 753 local levels (governments) as per the administrative division of the country done through the Constitution of Nepal, 2072 and all the documents there are in Nepali. If you need to pursue any legal or professional work, then you should refer to the authentic legal document rather than the unofficial english translations which you find anywhere (including this note which is merely for study purpose). You might also have faced various benefits or drawbacks while studying laws in english, which you can write down in the comments, which is at the last of this article.

PDF Note:

The Insurance Act 2079 Super Summary Notes is provided below, which you can view from here or download it directly to your device too.

   

The Glossary of this notes, which will be needed very often, so we recommend you to put it aside open in another tab to checkout the abbreviations / short forms now and then.

Bare Nepali Act : If you would like to read the bare nepali act then you can view the file from the below link:

Bare Nepali Insurance Act, 2079

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