Nepal Insurance Act, 2079 PDF Notes in English

[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 Insurance related bill 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.

With the enforcement of the act, the former Beema Samiti (often translated to Insurance Board) got transformed into Nepal Beema Pradhikaran (can be translated to Nepal Insurance Authority, but to remember that the law has not provided the english name to it).

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Laws repealed by the IA79:

• Insurance Act, 2049
• Rastriya Beema Sansthan Act, 2025 ~ The Rastriya Beema Sansthan (RBS) (Can be translated to National Insurance Corporation), a life insurer, was not established under the Companies Act and was done via this act. Now that act has been repealed and one year's time is provided to RBS to convert into a company and also to float shares to the public and also it has obligation to increase it's paid-up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 PUC of a Life Insurer as prescribed by the Beema Samiti (Now Beema Pradhikaran). It's current PUC is only Rs. 18.1 crores (Rs. 181 million). Audit of RBS for many years has not been finalized either.

Course Content :

• For CAP-II Students: As per ICAN's notice dated 13^th March, 2023 AD , contents upto section 97 is required to be covered.

• For CAP-III Students: Whole of the Insurance Act, 2079 is to be covered

Remembering sections ? : Don't do that with the sole purpose of rotting down the section numbers. If it gets remembered by itself, then it's okay but don't invest time writing down section name and number and just into it. 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, rather than the section numberings.

About the Super Summary Notes :

• The Glossary and chapter list are already included inside the main note pdf but also provided separately because there are total 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 since legal document in english is never official in Nepal. 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 Nepali to English, usage of words differ from one author to another. 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, rest 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 as their official language is English, so reading and writing about laws in English is useful there, not here practically.
• The first column of the notes is Section Number, second column is Heading, third column is Elaboration and the fourth column contains the Comments/ Remarks
• 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 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 translation in English
• Chief Executive (CE) is used all over the document because the definition of CE in section 2 itself provides 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
• Chapter 19 [Actions, Offenses & Punishments] of the act is not included in this summary notes
• Wordings such as "do or cause to" is used which denotes do or cause to do the same 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" / "can" and "shall" are highlighted (bold + underlined + italics somewhere) 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
• 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 rigid and specific word-to-word translation requirement. You can use wordings which you feel easy with. 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 summary

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

Of course, you will expand your vocabulary with plenty of English and Latin legal words and also you might be able to draft reports, pass on advices in English language to your non-Nepali clients or those who require English by default. But, even to be able to do so, you need to surf down the authentic bare Nepali legal document to confirm what you are passing out. The acts passed by the federal parliament, orders and ordinances issued, regulations passed by the government, various important governmental decisions, etc. are authentic which 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 via Constitution of Nepal, 2072 and all the documents there are in Nepali. If you need to pursue any legal / professional work, then you should refer to the authentic legal document rather than the unofficial english translations that you find anywhere (including the notes here which is merely for study reference purpose). 

              

PDF note :

Click Here for the Notes>>> Notes     

Click here for Glossary, which you will need very often, so put it aside open in another tab to checkout the abbreviation/ short forms now and then >>  Glossary

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

@ EMBF

Notes & Glossary:

• ^[1] In Nepal, the Federal Bills come into enforcement only after being assented by the President and Province Bills only after being assented by the Province Head.
• All the date used in this article are in Bikram Sambat (B.S.), the national calendar system used in Nepal which is about 56.7 years ahead of the Gregorian calendar system
• RBS : Rastriya Beema Sansthan
• IA79 : Insurance Act, 2079
• PUC : Paid-Up Capital
• HoR : House of Representatives (The Lower House of the Federal Parliament of Nepal)