Insurance Board Accumulates Rs.1.77 Billion Regulatory Fees from Life and Non-Life Insurers

Kathmandu: Insurance Board has witnessed an increase of 16.44 percent in fiscal year 2078/79 in its regulatory fee from life and non-life insurers. Due to the increase in premium income of life and non-life insurance companies, the income of regulatory authority has also increased.

In the last financial year, the Board’s had earned Rs.1.77 billion regulatory fees from 19 life and 20 non-life insurers. In the previous year, the Board had earned Rs. 1.52 billion life and non-life insurers against regulatory fees. The income does not include the income of the reinsurance company since the financial reports of the re-insurers for the last fiscal year have yet to be published.

As per the third quarter’s report published by Nepal Reinsurance Company Limited(Nepal Re), it has paid Rs.8.78 crore for regulatory fees. Similarly, Himalayan Reinsurance(Himalayan Re) has paid Rs.52.59 lakh till third quarter of last fiscal year.

According to the Insurance Board, 39 insurance companies, including 19 life insurers, have earned a total insurance fee of Rs. 1.77 trillion in the last financial year.

According to subsection 920 of Section 40 of the Insurance Act 2049, every insurer (including reinsurer) must pay 1 percent of the total insurance premium earned from its business as a regulatory fee to the Insurance Committee.

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