| Non-Renewal of Certificate of the Insurer | Not to be registered as an Insurer |
| 1. Balance Sheet Not Submitted | 1.Name Resembles With another Insurance Business |
| 2. Statement of PL not Submitted | 2. wants to operate both Life and Non Life insurance |
| 3. Actuary Report Not Submitted | 3. Paid up capital requirement not met (2 billion/1 Billion) |
| 4. Audit Report Not Submitted | 4. Board has made a decision not to register additional corporate body on the basis of report regarding to the study and research and evaluation of the insurance business market |
| 5. Service Charge Not Paid | |
| 6. Prohibited to Carry out insurance activities (Ban as per Section 12 A) | |
| Ban to Be imposed on the Insurance Business | Cancellation of Registration |
| 1. Unable to follow the Directives issued by the Board | 1. Fails to operate within 6 months of Obtaining registration |
| 2. Provided Loans to Director, His/her Family members or a body corporate where such persons are Managing Agent or partner or providing guarantee to such person | 2. Liability exceeds the Assets |
| 3. Fails to Provide intimation of dealing with director/family members or such body corporate as above | 3. fails to pay the liability as directed by the court |
| 4. Fails to maintain accounts and records | 4. if the head office of the insurance business is situated outside Nepal and Nepali insurers are not provided the same facility as the Foreign Insurer |
| 5. Fails to maintain Separate Accounts | 5. If the insurer doesn't open office in Nepal |
| 6. fails to maintain the Capital Fund | 6. functions not performed as per the act |
| 7. Fails to maintain compulsory reserve fund | |
| 8. Assumes the risk without accepting Premium | |
| 9. Fails to Reinsure as prescribed | |
Published By
Aadesh Kandel
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