Life Insurance in Nepal

Life Insurance in Nepal

Insurance Act 2079 of Nepal defines life insurance as a contract where the person designated by insured or the rightful person receives the amount in the event of death of insured as specified on the policy, given that one time premium or installments of premium is paid on the basis of age in relation to insured’s life. Nepal Insurance Authority (NIA) regulates and oversees life insurance industry and companies in Nepal. In this article, we will discuss life insurance in Nepal, its history along with glance at the market, industry and companies.


Life Insurance Companies in Nepal

As of the beginning of 2024, Nepal boasts a vibrant life insurance sector with 14 active companies providing a diverse array of products. These offerings include whole life, term life, single premium plans, endowment policies, rural endowment programs, and comprehensive coverage for disabilities and critical illnesses. To ensure financial stability, the regulatory authority has set a minimum paid-up capital requirement of Rs. 5 billion for these life insurance companies. Below is the list of life insurance companies in Nepal:

  1. Asian Life Insurance Company Limited

  2. Citizen Life Insurance Company Limited

  3. Himalayan Life Insurance Limited

  4. IME Life Insurance Company Limited

  5. Life Insurance Corporation (Nepal) Limited

  6. MetLife (ALICO)

    • Website:
    • Contact/Phone: +977-01-5970166
    • Address (Head Office): Narayani Complex, Pulchowk, Lalitpur
    • Not listed in NEPSE/Share Market of Nepal
  7. National Life Insurance Company Limited

  8. Nepal Life Insurance Company Limited

  9. Prabhu Mahalaxmi Life Insurance Limited

    • Website:
    • Contact/Phone: +977-01-5352012, 5326856 , 5362223, 5326065, 5326568
    • Address (Head Office): Shanti Marg, Kamaladi, Kathmandu
    • Check its share price, news and other information at: Mero Lagani, Nepse Alpha, Share Sansar
  10. Rastriya Jiban Beema Company Limited

    • Website:
    • Contact/Phone: +977-01-4262520
    • Address (Head Office): Ramshahpath, Kathmandu
    • Not listed in NEPSE/Share Market of Nepal
  11. Reliable Nepal Life Insurance Limited

  12. Sanima Reliance Life Insurance Limited

  13. Sun Nepal Life Insurance Company Limited

  14. SuryaJyoti Life Insurance Company Limited

Life Insurers’ Association Nepal

Facilitating collaboration and synergy among these entities is the “Life Insurers’ Association Nepal”  also known as “Jeevan Bimak Sangh Nepal (JEBISAN)”. This association serves as a platform for life insurance companies to discuss common agendas, engage in collective negotiations, and streamline their operations for the benefit of both industry participants and policyholders.

Life Insurers’ Association Nepal (JEBISAN) stands as a non-profit entity comprising life insurance companies in Nepal. It was established in 2001 to champion the growth and development of the life insurance sector while safeguarding the interests of its members. Dedicated to advancing the life insurance industry, JEBISAN conducts diverse research, advocacy, and public awareness programs. The organization actively contributes to shaping the regulatory framework for Nepal’s life insurance industry, maintaining regular engagement with regulatory bodies and stakeholders to ensure effective and transparent industry oversight.

Visit their website:

History of Life Insurance in Nepal

Though insurance company was first established in 2004 B.S. in Nepal, it was only in 2029 B.S. that any company had issued life insurance policies. Before that, people would go to India and buy life insurance policies. Rastriya Beema Sansthan Private Limited was established in 1st Poush 2024 B.S. (1968AD) under then Company Act as a Government owned entity. This was licensed to operate general insurance business. Later it was converted into “Rastriya Beema Sansthan” institution under “Rastriya Beema Sansthan Act” in 1st Poush of 2025 B.S. Only in 2029 B.S., five years after its establishment, it ventured into the life insurance business. This way, it became the first company to run life insurance policies in Nepal. For decade and a half, Rastriya Beema Sansthan had monopoly in the life insurance sector.

Only in 2044 B.S., this monopoly was broken by National Life Insurance Company, registering itself as second. 14 years later, it was followed by Nepal Life Insurance, Met Life and LIC Nepal, making total of 5 life insurance companies by the end of 2058 B.S. Four more life insurance companies got established in 2064-65 B.S. These were Surya Life, Gurans Life, Asian Life and Prime Life. Only on/after 2074 B.S., rest of the life insurance companies appeared in Nepal. There were total of 19 life insurance companies in Nepal by end of 2075 B.S. However, citing the cut-throat competition in a considerably small market, regulator encouraged companies to go into merger and acquisition. This resulted in 14 life insurance companies by the start of 2024 A.D.

Life Insurance Market Scenario in Nepal

In Nepali market, you can find all kind of life insurance products such as term life, whole life, endowment life, etc. protecting you against risk of death and disability. Generally, protection against disability comes as a rider benefit, which means you must buy a life insurance policy first to get disability protection as additional benefit by paying additional premium. Also, in certain policies, you have the option to participate in the profit made by company. Term life policies are very cheaper compared to other investment-cum-protection policies, however, they cover only life risk and don’t provide investment return. That is why endowment policies are more subscribed than term life policies in Nepal. But for smart person, who have time and avenues to invest, term life is the way to go.

Life insurance market in Nepal is mainly driven by agents and their network. Since endowment policy has investment element in it, agents get lucrative incentive in the form of commission for bringing in new customers or renewals. This encourage normal people to sell the policies to their relatives and friends. Customers buying it benefit by protecting themselves against the risk of life of bread earner while saving money for future. Customer can indirectly benefit by the investment returns made by the company by participating in profit. This is win-win situation for both the parties. Besides, tax relaxation for life insurance premium amount of up to Rs. 40,000 (since budget of F.Y. 2022/23) also makes it good deal for low to middle income people. Previously this limit was of Rs. 25,000.

Glance at Life Insurance Industry in Nepal

As per the NIA report, Gross Premium Collection from life insurance business stood at Rs. 142.57 Arab (billion) in F.Y. 2022/23. This was 2.85% increment from previous year. Meanwhile, life insurance companies paid total of 254,798 claims amounting to 58.98 Arab (billion) in the same period.

Overview of Life Insurance Industry in Nepal
Life Insurance Indicators F.Y. 2021/22 F.Y. 2022/23 Change %
Gross Premium Collection Rs. 138.64 billion Rs. 142.57 billion 2.84
Population % Covered (excluding FE Policies) 38.44% 39.04% 1.56
Population % Covered (including FE Policies) 41.39% 44.38% 7.22
Insurance Penetration
(Percentage of Gross Premium to GDP)
2.81% 2.65% – 5.69
Insurance Density Rs. 4,594.83 per capita Rs. 4,683.26 per capita 1.92
Total Investment Rs. 473.16 billion Rs.569.16 billion 20.29
Claim Paid (in number) 240,968 254,798 5.74
Claim Paid (in amount) Rs. 52.54 billion Rs. 58.98 billion 12.25
Paid Up Capital Rs. 43.89 billion Rs.52.16 billion 18.84

Note: The values of indicators were calculated by NIA after collecting data from insurers as on mid-July of F.Y. 2022/23.

Similarly, population covered by life insurance in Nepal (excluding foreign employment policies) was 39.03% in F.Y. 2022/23. Previous year, this coverage was only 38.44%. However, life insurance penetration, measured as ratio of gross premium collection to GDP, decreased slightly to 2.65% in F.Y. 2022/23. Life insurance density slightly increased to Rs. 4,683.26 per capita in the same period. Total investment made from life insurance business in F.Y. 2022/23 was Rs. 569.16 Arab (billion), which was considerably high (by 20.29%) compared to previous year. This showed that, significant amount of investment made in Nepal were coming from pool of funds collected by life insurance companies.