Nlic Project Work Report From Eashwari Bhandari (ABIMS)

A ROJECT REPORT
ON
Life Insurance for every one
AL-BARKAAT INSTITUTE OF MANAGEMENT

STUDIES, ALIGARH
SUBMITED BY:
EASHWARI PRASAD BHANDARI
MBA (2008-10)
Roll no. …………………………………….
INDURSRY GUIDE FACULTUY GUIDE

Mr. Umapati Pokhrel Mr. Faraz Ahmad
(Branch Manager) (Lecturer- ABIMS)
Nepal life insurance Company Aligarh
Butwal (Rupendehi)
West Nepal
TABLE OF CONTENT
Topic Page No
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A L -B A R K A A T IN S T IT U T E O F M A N A G E M E N T S T U D IE S ,
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Declaration 3
Preface 4
Acknowledgement 5
Chapter – 1 Executive Summary of the project 6
Chapter – 2 Introductions 8-11
• Scope of Project
• Objective of Project
• Research Methodology
 Research Design
 Data Collection
 Presentation of Data
 Period of Study
• Limitation
Chapter – 3 Industry Overview 12-30
Chapter – 4 Organizational Profiles 31-63
• NLIC : Overview
• Vision & Value
• Fact Sheet
• Products
(NLIC Insurance plans)
• Management Team
Chapter – 5 Main Report 64-94
• Data Analysis
• Findings
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• Conclusion
• Suggestion
Chapter – 6 Bibliographies 95-100
DECLARATION
I hereby declare that the project work entitled is an original and bonafide work done by me.
This project is being submitted as a part of MBA (Master of Business Administration) from
Al- Barkaat Institute of Management Studies, Aligarh (Uttar-Pradesh).
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The content of this report is based on the information collected by me during my tenure at
NEPAL LIFE INURANCE COMPANI LIMITED Butwal.
ABIMS, ALIGARH
PREFACE
Progress is the continuous process. It is relative and absolute. We can’t stop a certain
destination and declare that target has been achieved and we need not go further. The summer
training programs is designed to give the future managers feel of the corporate happenings and
work culture. These real life situations are entirely different from the stimulated exercise
enacted in an artificial environment inside the classroom and it is precisely because of this
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reason that this summer training program is designed, So that the manager of tomorrow not
feel ill in the case when the time comes to shoulder responsibilities. The summer training is a
bridge between the institution and organization. Summer training program made us to
understand how theoretical knowledge will be applied in the practical field.
It was exactly in this s context that I was privilege to join NLIC (Nepal’s No one private life
insurance company) on 16th of June 2009, as a summer trainee. NLIC (Nepal Life Insurance
Company Limited) is known as not only for its professional management, but also for its
enlightened and progressive approach towards employee welfare and betterment of the society
and customer.
The experience that I have gathered over the past two months has certainly provided me with
an orientation, which, I believe, will help me, Shoulder any assignment successfully in future.
During this period the report which I made was done after a deep, comprehensive and full-
fledged study and is based on my original research and investigation.
ACKNOWLEDGEMENT
Any research work is not complete and prefect without the help and guidance from other
people. This project work of mine “LIFE INSURANCE “SAVING, INVESTMENT OR ?”
in the light of (NEPAL LIFE INSURANCE COMPANY LIMITED)” would not have
reached its fulfillment hadn’t been the guidance given to me by various people whom come
across in the department. This report is the result of cooperation of the officials of the
department without which this project would have been complete.
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I would like to express my sincere gratitude to Mr. FAIZ SIDDHAQE (Director ABIMS)
Mr. FARAZ AHAMAD (Marketing) and Mr. ADIL ZIA (Placement In charge) of Al-
Barkaat Institute of Management Studies, Aligarh, who have given me such a big
opportunity to do a project in an esteem organization like “Nepal Life Insurance Company
Limited” in Nepal.
I would like to extend my sincere thanks to Mr. MANOJ KUMAR BHATTARAI (CEO
NLIC) for providing me an opportunity to do a project in their esteemed organization and for
the guidance and cooperation by officials of Nepal Life Insurance Company Limited, in the
course of my interface with them.
I whole heartedly acknowledge the intellectual stimulation for my esteem guide Mr.
UMAPATI POKHREL (Branch Manager, Butwal), Mr. SUSHIL KUMAR CHAUDHARY
(DGM, Corporate office, Katmandu) and Mr. MAHESH NIRAULA (Manager, Corporate
office, Katmandu) for their continuous help and guidance throughout the project duration in
spite of their busy schedule`

ABIMS, ALIGARH
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PROJECT TITLE LIFE INSURANCE (SAVING,
INVESTMENT OR. “Finding awareness levels
of life insurance with special emphasis on NLIC
vis other player in market.
NAME OF THE COMPANY Nepal Life Insurance Company Limited
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(Milan choke, Butwal, Nepal)
PLACE OF THE WORK Butwal.
DURATION 45 days
ORGANIZATION GUIDE Mr. Umapati Pokhrel (Branch Manager- Butwal)
Mr. Sushil Kumar Chaudhary (DGM- Corporate
Office)
INTERNAL GUIDE Mr. Faraz Ahmad
MAJOR OBJECTIVE To know which mode of investment is most
popular among the people and how they are
looking Life insurance policies.
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SCOPE OF THE PROJECT
In this chapter the objective of the study are discussed and the research methodology is
designed. The types of the research, sampling units, size etc. are taken into consideration. Also
the limitations are taken out from the survey.
The project helps me chance to understand the changing behavior of the customer towards
Investment sector. And become helpful to provide me knowledge about the problems facing by
the company. As the political environment and conditions are rapidly changing, and Nepal is in
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front of Historical changes, thus this project and research work help to provide a beneficial
opportunity to understand the views of people towards investment and savings.
The project work helps me to understand the thinking of people towards the attractive
investment sector and saving policies adopted by them in the changing scenario of Nepal. The
project is also providing me an opportunity to know the peoples changing behavior for the
investment and saving sector due to the political instability.
OBJECTIVE OF THE STUDY-
1. To know about the modern techniques of investment in Nepal.
2. Analyze the causes of acceptance level of insurance plan of Nepal Life
Insurance Company.
3. To know the view of Nepalese people towards life insurance.
RESEARCH MEHTODOLOGY –
➢ Research design
Type of research Exploratory Research
Sampling Type -Private Employees,
-Government Employees,
-Self Employed.
Sample Size 95
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Sampling Unit Butwal
➢ Data Collection Method –

1. Primary Data
-Customer Visit
-Agent Visit
2. Secondary Data
- Concerned data
- Business news papers, Magazines, Annual reports.
- Internet
➢ Presentation of Data –
Data has been presented in the form of tables and bar diagrams.
➢ Period of study: 16th June 2009 to 4th August 2009.
LIMITATION –
➢ The time and cost factors prevented me to take large number of sample size.
➢ Busy schedule of customers is also another limiting factor which prevents me to widen
the scope of the study.
➢ Busy schedule of the consumer and officials is another limiting factor during the
project work.
➢ Closing of fiscal year of the Insurance Company create problem to me for collecting
the information regarding insurance form office.
➢ Political disturbance and instability create problem to me during collecting the data.
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➢ The current issue of NLIC and National life and general insurance company play a
role of barriers towards collection of information through respondents.
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Definition of insurance –
➢ Insurance is a means of providing protection against financial loss in a great variety of
situations.
➢ Basically Insurance is known as means of protection.
➢ Insurance is an agreement by which one makes regular payment to a company who
paid an agreed sum if damage, loss or death occurs.
➢ Insurance is a contract that provides compensation for specific losses in exchange for a
periodic payment. An individual contract is known as insurance policies.
➢ A system under which individuals, business, and other organizations or entities, in
exchange for payment of a sum of money (called an insurance premium), are
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guaranteed compensation for losses resulting from certain perils under specified
conditions in a contract.
➢ It is a contract in which one party agrees to pay for another party's financial loss
resulting from a specified event.
➢ The act, system, or business of insuring property, life, one's person, etc., against loss
or harm arising in specified contingencies, as fire, accident, death, disablement, or the
like, in consideration of a payment proportionate to the risk involved
➢ Coverage by contract in which one party agrees to indemnify or reimburse another for
loss that occurs under the terms of the contract.
➢ Life Insurance is transfer of a risk to the insurer. The risk assumed by the insurer is the
risk of death of the insured. It is contract between Insured and Insurer to compensate
financial based on sum assured and premium paid there in.
Origin of Insurance
Basically there are two views belongs to insurance. The first one is, Almost 4,500 years ago,
in the ancient land of Babylonia, traders used to bear risk of the caravan trade by giving loans
that had to be later repaid with interest when the goods arrived safely. In 2100 BC, the Code of
Hammurabi granted legal status to the practice. Life insurance had its origins in ancient Rome,
where citizens formed burial clubs that would meet the funeral expenses of its members as
well as help survivors by making some payments.
As European civilization progressed, its social institutions and welfare practices also got more
and more refined. With the discovery of new lands, sea routes and the consequent growth in
trade, medieval guilds took it upon themselves to protect their member traders from loss on
account of fire, shipwrecks and the like. Since most of the trade took place by sea, there was
also the fear of pirates. So these guilds even offered ransom for members held captive by
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pirates. Burial expenses and support in times of sickness and poverty were other services
offered. Essentially, all these revolved around the concept of insurance or risk coverage. That's
how old these concepts are, really. In 1347, in Genoa, European maritime nations entered into
the earliest known insurance contract and decided to accept marine insurance as a practice.
The growing years:

The 19th century saw huge developments in the field of insurance, with newer products being
devised to meet the growing needs of urbanization and industrialization. In 1835, the infamous
New York fire drew people's attention to the need to provide for sudden and large losses. Two
years later, Massachusetts became the first state to require companies by law to maintain such
reserves. The great Chicago fire of 1871 further emphasized how fires can cause huge losses in
Densely populated modern cities. The practice of reinsurance, wherein the risks are spread
among several Companies, was devised specifically for such situations. There were more
offshoots of the process of industrialization. In 1897, the British government passed the
Workmen's Compensation Act, which made it mandatory for a company to insure its
employees against industrial accidents. With the advent of the automobile, public liability
insurance, which first made its appearance in the 1880s, gained importance and acceptance? In
the 19th century, many societies were founded to insure the life and health of their members,
while fraternal orders provided low-cost, members-only insurance.
Even today, such fraternal orders continue to provide insurance coverage to members as do
most labor organizations. Many employers sponsor group insurance policies for their
employees, providing not just life insurance, but sickness and accident benefits and old-age
pensions. Employees contribute a certain percentage of the premium for these policies. And
according to another view, Insurance is born on sixteenth century. In 18th June 1583 William
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Gibbons is the first person who insures himself. His Insurance is done only for one year. At
that time Insurance is done only for one year and renewed latter.
Types of insurance
Generally there are two types of insurance.
1. Life Insurance
2. General Insurance ( Non life insurance )
1. Life Insurance-
Life insurance, sometimes referred to as life assurance, provides for payment of a sum of
money upon the death of the insured. In addition, life insurance can be used as a means of
investment and also a means of saving.
Insurance in which the risk insured against is the death of a particular person, the insured,
upon whose death while the policy is in force, the insurance company agrees to pay a started
sum or income to the beneficiary. In generally, Insurance related to the living beings is life
insurance. Now a day’s Life Insurance is using as different mode like mode of saving , mode
of transfer of risk, mode of tax saving , mode of Income generation etc.
Now a day’s people are active towards their safety and searching the several way of financial
safety. Insurance is one of the ways of financial security. Insurance has its own history
sixteenth century. The first person who takes the Insurance plan in 18th June 1583 was
Williams Gibbons. His Insurance is done for only one year. That time Life Insurance is done
for only one year and it should be renewed every year as Non life insurance now a days.
2. General Insurance -
General insurance policies, including automobile and homeowners policies, provide payments
depending on the loss from a particular financial event. General insurance typically comprise
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any insurance that is not determined to be life insurance, and is called property and casualty
insurance in the U.S.
In common sense General Insurance is referred as non life insurance. This type of insurance is
done for transfer the risk of property by the one person to another company (Insurance
Company).For this purpose some premium must be paid to the company and company agree
to bear the risk of such property. If any damage take place during the insurance period,
company compensate for that damage or loss. Such kind of insurance is non refundable and
payable only when property of insured thing is destroyed. Basically In such type of Insurance
the person who wants to insure his property like building, factory etc. must paid some amount
of money ( calculated according to the norms of the Insurance company) to the Insurance
Company and such a way the person can transfer financial risk to the company. If any
damage occur to the insured property, the insurance company compensate to the insurer
(according to the contract). These Insurance is renewed every year and is non refundable.
These Insurance cannot be used as saving and for Income generation thus are less popular in
Nepal than the Life Insurance.
Insurance in Nepal-
Insurance is a federal subject in Nepal and has history dating back 2004B.S. (1947 A.D.). The
modern insurance in Nepal was developed only after the establishment of the first commercial
bank, Nepal Bank Limited & some other industries like Biratnagar Jute Mill, Juddha Match
Factory, etc. At 1992 B.S. (1935 A.D.), Rana Prime Minister Juddha Shumsher Jung Bahadur
Rana brought the concept of insurance policy in Nepal. At these early period Indian Insurance
Company was operating its business in Nepal & there was no such corporation registered in
Nepal before 2004B.S. (1947 AD). In 2004B.S. (1947 AD) Nepal Bima & Chalani Company
was established to make insurance of the trade that took place between India & Nepal In 2016
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B.S (1959 A.D.). Nepal Insurance & Transport Company was established with the investment
of Nepal bank Ltd. The business of this insurance company was limited only to the customs of
Nepal Bank Ltd itself, which was again renamed as Nepal Insurance Company Ltd. Therefore,
the insurance transaction was heavily dependent upon the agents of Indian companies mainly
Indian Life Insurance Corporation, Oriented Fire & General Insurance Company, Rubi General
Insurance Company & Sterling General Insurance Company.
In (26/12/1967 A.D.) Rastriya Beema Sansthan was established as a limited company under
joint venture of public & private sector. This was the first ever established insurance company
which started its business from 23/02/1968 by insuring the motor vehicle of Late King
Mahendra. In 1968, this private company was changed into corporation & named Rastriya
Beema Shansthan which was brought under Rastriya Beema Shansthan Act 1968. In 1967,
HMG organized Beema Committee consisting of 5 members which was respondent for the
overall operation & Management of insurance business in Nepal. The first insurance company
established from the private sector was National Life & General Insurance Company Private
Limited in 1986 A.D. which started its business in1987 A.D. Till 26/07/2009 A.D. there are
about 25 insurance companies out of which 9 are participated in life insurance business. Others
are carrying out non-life insurance business.
History of life and general insurance in Nepal

History of general insurance in Nepal goes back to B.S.2005 (1948 A.D.). Right from 1950
A.D., a number of companies started their operation in General insurance. Presently 15
companies are transacting general insurance business. But start and growth of life insurance
has been very slow. Life Insurance Corporation of India started life insurance business in
Nepal but its function was mostly confined To Katmandu city. LIC stopped its operation in
1972 A.D. Life insurance business was taken over by Rashtriya Beema Sansthan in B.S.2029
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after its incorporation on B.S. 2024/09/01 (16-12-1967 A.D.) and by National life and General
Insurance Company in B.S.2045(1989A.D.) after its incorporation on B.S.2043/02/19 (2-6-
1986)A.D.
The insurance activities were regulated by Insurance Act 2026(1969). The Act and the
regulations were modified and new Insurance Act and Regulations were enacted in
2049(1992). Beema Samiti observes and regulates the insurance activities in Nepal as per the
provisions of Insurance Act 2049 and Insurance regulations 2049B.S.Even though the
Performance of RBS has been impressive, the Reach and density of insurance has been very
low even in comparison with the insurance density in developing nations.
History of Life Insurance in Nepal is not yet old. Insurance in Nepal has its history dating
back till 1947 A.D. Beema Samiti (Insurance Board) is the Insurance Regulatory Authority of
Nepal, The line ministry of the Finance Ministry, Nepal. The word 'Beema' means 'Insurance'
and 'Samiti' denotes 'Board'. Hence, the Word 'Beema Samiti' is synonymous to Insurance
Board which is constituted to systematize, regularize, develop and regulate the insurance
business within the country under Insurance Act, 1992. This Samiti (Board) looks after all the
insurance related activities in the State of Nepal. As a regulatory body, the Board's main
concern is to create a professional, healthy and developed insurance market in Nepal.
Furthermore, after the restoration of democracy in 1990 AD. Insurance environment began to
change simultaneously along with other factors. Thus to meet the requirements of the changing
situation, Insurance Act, 1968 was repelled by new Insurance Act, 1992 (Beema Ain, 2049).
The preamble of the
Act clearly states the purpose of the Act, thus "to establish an Insurance Board to systematize,
regularize, develop and regulate the insurance business". To achieve the goal of the preamble,
Beema Samiti (Insurance Board) is formed as an autonomous body the Insurance Act of 1992.
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Development of Insurance in Nepal
The modern insurance in Nepal was developed only after the establishment of the first
commercial bank, Nepal Bank Limited & some other Industries like Biratnagar Jute Mill,
Juddha Match Factory, etc. At 1992 B.S., Rana Prime Minister Juddha Shumsher Jung
Bahadur Rana brought the concept of insurance policy in Nepal. At these early periods Indian
Insurance Company was operating its business in Nepal & there was no such corporation
registered in Nepal before 2004B.S. (1947 AD). In 2004B.S. Nepal Bima & Chalani Company
was established to make insurance of the trade that took place between India & Nepal. In 2016
B.S.; Nepal Insurance & Transport Company was established with the investment of Nepal
bank Ltd. The business of this insurance company was limited only to the customs of Nepal
Bank Ltd itself, which was again renamed as Nepal Insurance Company Ltd. Therefore, the
insurance transaction was heavily dependent upon the agents of Indian companies mainly
Indian Life Insurance Corporation, Oriented Fire & General Insurance Company, Rubi General
Insurance Company & Sterling General Insurance Company. In 2024/09/01, Rastriya Beema
Shasthan was established as a limited company under joint venture of public & private sector.
This was the first ever established insurance company which started its business from
2024/11/11 by insuring the motor vehicle of Late King Mahendra. In 2025, this private
company was changed into corporation & named Rastriya Beema Shansthan which was
brought under Rastriya Beema Shansthan Act 2025. In 2024, HMG organized Beema
Committee consisting of 5 members which was respondent for the overall operation &
management of insurance business in Nepal. The first insurance company established from the
private sector was National Life & General Insurance Company Private Limited in 2043B.S.
which started its business in 2044. Till 2066/04/12 or 26/07/2009 There are about 25 insurance
companies out of which 9 are participated in life insurance business. Others are carrying out
non-life insurance business.
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List of Life Insurance Companies (As July 2009) in Nepal-
Apart from Rastriya Bima Sansthan, the public sector life insurer, there is 8 other private
sector Life insurance companies are growing the Life insurance business in Nepal. Some of
them are joint venture of Nepalese groups and global insurance giants and some of them are
established through investing by Nepalese group only.
Life Insurance Company in Public Sector –

In Nepal currently there is only Insurance Company is playing the role of Life and General
Insurance business as public sector.
 Rastriya Bima Sansthan
Life Insurance Companies In private sector-

1. National Life Insurance Company Limited
2. Nepal Life Insurance Company Limited
3. Life Insurance Corporation (Nepal) Limited
4. American Life Insurance Company Limited
5. Asian Life Insurance Company Limited
6. Gurans Life Insurance Company Limited
7. Surya Life Insurance Company Limited
8. Prime Life Insurance Company Limited
General Insurance Companies in Nepal
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1. Nepal Insurance Company Limited
2. The Oriental Insurance Company Limited
3. . National Insurance Company Limited
4. Himalayan General Insurance Company Limited
5. United Insurance Company (Nepal) Limited
6. Premier Insurance Company (Nepal) Limited
7. Everest Insurance Company Limited
8. Neco Insurance Limited
9. Sagarmatha Insurance Company Limited
10. Alliance Insurance Company Limited
11. NB Insurance Company Limited
12. Prudential Insurance Company Limited
13. Shikhar Insurance Company Limited
14. Lumbini General Insurance Company Limited
15. NLG Insurance Company Limited
16. Siddartha Insurance Limited
Related Act of Insurance-

Even Insurance is grown in Nepal till 2004B.S. (1947 A.D.) but it is operated without any act.
The insurance sector went through a full circle of phases from being unregulated to completely
regulate and then currently being partly deregulated. It is governed by a number of acts, with
the first one being the Insurance Act 2049 B.S. (1992 A.D.).
Whereas, it is expedient to establish an Insurance Board to systematize, regularize, develop
and regulate the Insurance Business, in the
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Twenty- first year of the regime of HIS MAJESTY KING BIRENDRA BIR BIKRAMSHAH
DEVA, the Parliament has made this Act. The Act is made with the guideline of the Board.
The Insurance Act 2049 B.S. (1992 A.D.)

The Insurance Act, 2049 B.S. (1992 A.D.) was the first legislation governing all forms of
insurance to provide strict state control over insurance business.
Constitution and Management of the Board

1. An Insurance Board shall be constituted to systematize, regularize, develop and
regulate the Insurance Business.
2. The Board pursuant to sub-section (1) shall consists of the following Members:
(a) A person nominated or designated by the
Nepal Government Chairman
(b) Representative, Ministry of Law,
Justice and Parliamentary Affairs Member
(c) Representative, Ministry of Finance Member
(d) A person nominated by the Nepal Government from among the persons having the
special knowledge in the Insurance Business Member
(e) A person nominated by the Nepal Government from among the
Insurance. Member
3. An employee designated by the Board shall perform the duty as a Secretary of the
Board.
4. The Nepal Government may make alteration of the Members of the Board by publishing
a notification in the Nepal Gazette, if it deems necessary.
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5. If it is deemed necessary, the Board may invite any national or foreign experts in the
meeting of the Board as an observer.
6. The tenure of the nominated Members of the Board shall be four years. They may be re-
nominated up to twice after the expiry of their tenure.
Insurance Regulation Act 2049 B.S. (1993 A.D.)

In exercise of the power conferred by section 47 of the Insurance Act, 2049, Nepal
Government has made the following Rules for the Life Insurance Companies, Non Life
Insurance Companies and for the Re Insurance Companies.
For Life Insurance Business -

(1)- The Insurer may operate the following Insurance Business under the Life Insurance
Business:-
(a) Whole Life Insurance,
(b) Endowment Life Insurance,
(c) Term Life Insurance.
(2)- Notwithstanding anything contained in sub-rule (1), the Board may prescribe other
categories of the Life Insurance Business as required.
(3)- The conditions and privileges of the Life Insurance Policy to be executed pursuant to this
Rule shall be as specified by the Board.
For Non-Life Insurance Business-
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(1)- The Insurer may operate the following Insurance Business under the Non-Life Insurance
Business:
(a) Fire Insurance,
(b) Motor Insurance,
(c) Marine Insurance,
(d) Engineering and Contractor's Risk Insurance,
(e) Aviation Insurance,
(f) Miscellaneous Insurance.
(2)- Notwithstanding anything contained in sub-rule (1), the Board may prescribe other
categories of Non-Life Insurance Business as required.
(3)- The conditions and privileges of the Non-Life Insurance Policy to be executed pursuant to
this rule shall be as specified by the Board.
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INVESTMENT CRITERIA OF LIFE INSURERS
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Catego Investment Sector Investment Remarks
ry of Percentage
Invest
ment
A Debentures of Govt. In any condition, not
& Central Bank or less than 25% of total
Debenture/ Saving investment should be
Certificates invested in Category
guaranteed by govt. ‘A’.
B (1) Fixed Deposit of (1) In any condition, (1) Maximum of 20% of the
Commercial Bank not less than 35% of total investment amount can be
total investment invested in the fixed deposit of
amount should be the same commercial bank
Invested in FD of which has been in operation for
commercial banks. at least 3 years and has done
But it is not periodic audit and maximum of
prevented to invest 5% of the total amount can be
more than 65% in invested on the basis of
Category ‘A’. appropriateness in case of the
Commercial bank which has not
reached 3 years operation.
(2) Fixed Deposit of (2) Not more than (2) Maximum of 5% of the total
Development Bank 15% of total investment amount can be
Investment amount. invested in the fixed deposit of
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Whatever is mentioned above, Insurer needs to follow as below for
investment:
1. In case of term investment, upon maturity, reinvestment should be done as specified
above.
2. If debentures of Govt. and Central Bank or debentures/saving certificates guaranteed
by Govt. are not available, remaining part of investment to be made in those sectors
should be invested in FD of commercial banks and same should be informed to
Insurance Board.
3. In case of every new investment and renewal of investment, specified limitations
should be followed.
4. Investment should be made for overall benefit of the Insurer.
5. While determining the amount to be invested in FD of banks, the amount deposited in
the Call Deposit or any other interest bearing account of the bank should also be
counted.
6. While investing as per Insurance Board’s directives, it should be done conscientiously
and failure to do so will hold the Board of Directors as responsible.
7. Banks scheduled by Nepal Rastra Bank of not having sufficient liquidity should not be
invested and should be withdrawn the past investment in those institutions.
Market Share of the Insurance Company
Public Sector 5%
Private Sector 95%
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NLIC Overview
Nepal’s Number one private life insurer, Nepal Life Insurance Company Limited is
established under the Company Act 2053 B.S. (1996 A.D.) and Insurance Act 2049 B.S.
(1992A.D.) as a public limited company on 2058/01/21 B.S. (04/05/2001 A.D.). NLIC is the
foremost life insurance company established by private investors. The promoters of the
company are a group of well known businessmen and business houses of Nepal. Within the
eight years of operation the Company has set up an excellent business record and has a strong
financial position.
The company has an. Issued Capital 500 Millions and Paid-up Capital 300 millions. Right
Share of 4:1 is in the process for offering to the share holders. Till March 2009 the company
has 2,07,077 insured worth Rs. 2208.79 Crore. Out of the total premium collected the company
has invested Rs. 328.78 Crore as per guidelines of Bima Samiti. The company has insured
itself with well-know reinsurance company "Hannover Re Life Reinsurance Company",
Germany and "SCOR Global Life ", Singapore.
Company started its operations in May 2001 after receiving approval from Beema Samiti
(Insurance Board), which is the Insurance Regulatory Authority of Nepal, The line ministry of
the Finance Ministry, Nepal. The company being only eight years old in Life Insurance
business special, efforts are being made to spot, recruit and train new agents not only in the
Academic part of insurance but also of marketing and servicing of insurance. For this purpose,
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the training sessions are being held at door steps of agents i.e. the 'Branch' and 'Centers' to
which they are attached. Concentrated attempts are being made to upgrade their knowledge, so
that they become our future assets and market leaders because only out of them will come our
future marketing personnel. The results so far achieved give us assurance that the company is
on sound and solid ground.
Service Performance
Personnel, office services, underwriting and accounting rules, work systems, procedures etc.
have been prepared/devised and put in operation. Even policy servicing rules and formats have
been prepared; they will be in use in the subsequent years. About 150 forms and formats
required for functioning of an insurance office and servicing of policies, agents etc. have been
prepared.
A number of jobs like, issue of acceptance letters, first premium receipts and policy bond and
preparation of adjustment books, commission bills, granting of loan and surrender of policies
have been taken on computer. The business data is also being generated on computer. The
software is the backbone of the insurance company and NLIC is fully automated.
Job description Time lag

Registration of proposal Day-to-day basis
Underwriting Day-to-day basis
Issuance of acceptance letter Day-to-day basis
Issue of FRP Day-to-day basis
Issue of policy bonds Day-to-day basis
Commission billing Fortnightly/Monthly
We have been able to maintain a fairly good level of performance in servicing our clients
which can be seen from the following performance indicators. As on end of April 13, 2009
Company paid 442 death claims with total amount of Rs. 64,080,777. At the same time
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company also paid Survival Benefit of 2115 policies amounting to Rs. 7, 25, 13,394 and
Maturity on 58 policies amounting to Rs. 4,055,275.
Board of Directors
The board of directors consisting of chairman, and 4 directors, 1 public director, 1 independent
director is the governing body of the company. The operating
Wing of the company is headed by the Chief Executive Officer, in the corporate office. He is
assisted by two Deputy General Manager and departmental heads of underwriting and policy
servicing, finance, information technology, personnel and marketing.
The branch offices which are the operating offices of the company are headed by the branch
managers who are assisted by marketing and administrative staff in the office and by a network
of agents in the field. The company plans to reach every segment of the population
geographical, social, professional etc., so as to provide social security to every eligible citizen.
Corporate Office
After liberalization of economy and opening up of life insurance business in Nepal, Nepal Life
Insurance Company is the first company, which was granted license for transacting life
insurance exclusively. The company started its operation on May 4, 2001 (B.S. 2058/01/21)
Insurance Regularity authority board of Nepal

Beema Samiti (Insurance Board) is the Insurance Regulatory Authority of Nepal, The line
ministry of the Finance Ministry, Nepal. The word 'Beema' means 'Insurance' and 'Samiti'
connotes 'Board'. Hence, the Word 'Beema Samiti' is Synonymous to Insurance Board which is
constituted to systematize, regularize, develop and regulate the insurance business within the
country under Insurance Act, 1992. This Samiti (Board) looks after all the insurance related
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activities in the State of Nepal. As a regulatory body, the Board's main concern is to create a
professional, healthy and developed insurance market in Nepal
Furthermore, after the restoration of democracy in 1990 AD, insurance environment began to
change simultaneously along with other factors. Thus to meet the requirements of the changing
situation, Insurance Act, 1968 was repelled by new Insurance Act, 1992 (Beema Ain, 2049).
The preamble of the Act clearly states the purpose of the Act, thus "to establish an Insurance
Board to systematize, regularize, develop and regulate the insurance business". To achieve the
goal of the preamble, Beema Samiti (Insurance Board) is formed as an autonomous body the
Insurance Act of 1992.
Constitution of the Board

The Board is constituted under the Insurance Act, 1992, article 3. The form of the board is as
under. Nepal Government may make alteration of the member of the Board by publishing a
notification in the Nepal Gazette, if it deems necessary. The tenure of the nominated members
of the Board shall be four years. They may be re-nominated up to twice after the expiry of their
tenure.
Function, Duties and Power

1. In order to systematize, regularize, develop and regulate the insurance business in the
Kingdom, the following functions, duties and powers are conferred on Beema Samiti.
2. Provide suggestions to Nepal Govt. to formulate necessary policy for systematizing,
regularizing, developing and regulating the insurance business,
3. Set out guidelines for insurers to invest their fund and prescribe the priority sectors for
such investment.
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4. Register and renew the Insurer, Insurance Agent, Surveyor or Broker and to cancel or
cause to cancel such registration,
5. Arbitrate in the disputes, which arises between the insurer and insured,
6. Make decision on the complaints filed by the insurer regarding to the settlement of
liability of the insurance,
7. Issue necessary directives to the insurer from time to time regarding insurance business,
8. Formulate necessary basis of the protection of interest of the insured, and
9. Do or caused to do other necessary functions regarding insurance business.
NLIC Edge- What makes us No 1?

The NLIC edge comes from our commitment to our customers in all that we do- be it product
development, distribution, the sales process or servicing. Here’s a peek into what makes us
leaders.
1. Our products have been developed after a clear and throughout understanding of
customer’s need. It is this research that helps us develop Education plans that offer
the idea way to truly guarantee their child’s education, Retirement solution that are
hedge against inflation and yet promise a fixed income after their retire, or Health
insurance that arms them with the funds they might need to recover from the dreaded
disease.
2. Having the right product is the first step, but it’s equally important to insure that our
customers can asses them easily and quickly. To this end, NLIC has an advisor based
branches all over Nepal and perfectly trained agent team, which are working for the
well fare of the customer and to satisfy the consumer.
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3. Robust risk management and underwriting practices from the core of our business.
With clear guidelines in place, we ensure equitable costing of risk, and thereby
ensure a smooth and hassle-free claims process.
4. Entrusted with helping our customers meet their long term-goals, we adopt an
investment philosophy that aims to achieve risk adjusted returns over the long-term.
5. Our potential planning for the consumer like foreign visiting insurance plan makes us
No 1 in the insurance market in Nepal.
6. Last but not the least, our 15000 plus strong team is given the opportunity to learn
and grow, ever day in a multitude of ways. We believe this keeps them engaged and
enthusiastic, so that they can deliver on our promise to cover their, at every step in
life.
VISION AND VALUE-

To make NLIC the dominant Life and Pension player built on trust by world class people and
service.
This we hope to achieve by:
 Understanding the needs of customers and offering them superior products and service
 Leveraging technology to service customers quickly. Efficiently and conveniently
 Developing and implementing superior risk management and investment strategies to
offer sustainable and stable returns to our policy holders.
 Providing and enabling environment to forester growth and learning for our employees.
 And above all building transparency in all our dealings.
To endeavor through the noble institution of Life Insurance in making every family
economically safe and secure whereby every citizen of Nepal may contribute his might in
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building a healthy, prosperous, strong & Vibrant Nation. To cater to financial and social needs
of every segment of society by designing differentiated and Innovative insurance instruments.
To provide after sales service to customers that can be hailed as the best.
The success of the company will be founded in its unflinching commitment to 5 core values-
Integrity, Customer First, Boundary less, Ownership and Passion. Each of the values describes
what the company stands for, the qualities of our people and the way we work.We do believe
that we are on the threshold of an exciting new opportunity, where we can play a significant
role in redefining and reshaping the sector. There are no limits to our growth.
Our values
Every members of the NLIC team is committed to 5 core values: Integrity, Customer First,
Boundary less, Ownership and Passion, These values shine forth in all we do, and have become
the keystones of our success.
How NLIC is differ from others?

Being in the business of selling life insurance it is performing the same job as the other
insurers dealing with "Life Insurance". However, Nepal Life Insurance Company has its own
identity because of the mission and manner for which it is working. The company is working
with a time bound strategy to fulfill its vision of spreading message of insurance to every home
and to contribute substantially in making Nepal an economically healthy and vibrant nation.
Apart from spreading the network of branches all over Nepal the company plans to make a
quantum jump in number of agents and to provide them adequate training for providing
knowledge and skill, so that the company can reach and depth in the market. The company is
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focusing on providing qualitative services of International Standard. Our ambition is to provide
across the counter services in all its operations.
This ambition cannot be fulfilled without the help of information technology. The company
has computerized most of its jobs from inception. In due Course of time, all its Branches will
be connected through wide area networking so that the customers can have access to policy
servicing from anywhere.
The company being only eight years old in Life Insurance business special, efforts are being
made to spot, recruit and train new agents not only in the academic part of insurance but also
of marketing and servicing of insurance. For this purpose, the training sessions are being held
at door steps of agents i.e. the 'Branch' and 'Centers' to which they are attached. Concentrated
attempts are being made to upgrade their knowledge, so that they become our future assets and
market leaders because only out of them will come our future marketing personnel. The results
so far achieved give us assurance that the company is on sound and solid ground.
Promoters
Nepal Life Insurance Company Limited is well known and popular business man of Nepal.
NLIC is the fully Nepali owned company, means this insurance company is established by
Nepali citizen. Out of 30 Crores is paid by well known businessman and remaining 5 crores by
issuing shares.
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FACT SHEET-
The company
Nepal Life Insurance Company Limited is fully Nepali owned Insurance company in Nepal
which is looking Life Insurance sector in Nepal since last eight years. Its head office is at
Kathmandu Firstly company is started its business from capital city Katmandu. The 1st branch
office of the company started its operation on the same day at Kathmandu. NLIC is the first
private sector insurance companies in Nepal begin its operation at 2058/01/21 (04/05/2001)
after receiving the approval from Beema Samiti (Insurance Board), which is the Insurance
Regulatory Authority of Nepal.
NLIC is established under the Company Act 2053 and Insurance Act 2049 as a public limited
company on 2058/01/21 (04/05/2001). NLIC is the foremost life insurance company
established by private investors. The promoters of the company are a group of well known
businessmen and business houses of Nepal. Within the eight years (till August 2009) of
operation the Company has set up an excellent business record and has a strong financial
position.
The company has an authorized capital of Rs. 100 Crore. Issued Capital of Rs 50 Crore and
Paid-up Capital of Rs 30 Crore. Right Share of 4:1 is in the process for offering to the
shareholders. In the current year the company (NLIC) has sold highest number of Life
Insurance Policies in Nepal.
Business Performance Report of NLIC(2008)
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Name of the company No of policy Percentage
Nepal Life Insurance Co. (NLIC) 98,000 37
Life Insurance Corporation of Nepal (LIC) 51,000 19

Asian Life Insurance co. 44,000 17
Nation Life insurance Co. 26,000 10
American life insurance Co 20,000 8
Prime Life Insurance Co. ltd 10,000 4
Rastriya Bima Samsthan 8,000 3
Guras Life Insurance Co. ltd 4000 1
Surya Life Insurance Co. Ltd 3000 1
Total Policy sold 2,64,000 100
In Percentage
Distribution
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Nepal Life Insurance Co. has one of the largest distribution networks amongst private life
insurance Co. in Nepal. As July 2009 the company has 43 offices across the country and over
20,000 advisors. The 1st branch office of the company started its operation on the same day at
Kathmandu.The company has opened 18 more Branches at Biratnagar, Birgunj, Butwal,
Pokhara, Banepa, Narayanghat, Nepalgunj, Birtamod, Lahan, Janakpur, Mahendranagar, Dang,
Surkhet, Hetauda, Urlabari, Phidim and Dhangadi. And 26 sales centers Sindhuli, Lamjung,
Rukum, Damak, Chandranigahapur, Gorkha, Rajbiraj, Nuwakot, Dadeldhura, Baglung,
Baneshwor, Kalanki, Balaju, Patan, Kawasothi, Magdhi, Guleria, Palpa, Arghakach, Puthyan,
Sindhuli, Mugu, Rolpa, Humla,Katari and Gulmi.
The Co. has provided the investment opportunity to that district where other investment
opportunities are not possible like Jumla, Kalikot as well as Karnali Zone etc. This can be
possible due to the well distribution and well management of the company. Company got
success in this fiscal year (2008-2009) for sold maximum number of Life Insurance Policies in
Nepal which is near about double than the last fiscal year. These achievements can be done by
the company due to the good and active distribution network.
PRODUCTS
Insurance Solutions for Individuals

Nepal Life Insurance Co. offers a range of innovative, customer centric products that meet the
need of customers at every life stage. The products are searched and launched on the basis of
demand of time. Company has started a newly developed plan for those people who want to
visit abroad for any purpose. These kinds of steps are innovative steps in the field of life
insurance in Nepal.
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Surakshit Jeevan Beema Yojana
It is an endowment plan. It can be taken by anyone in the age group between the ages of 11
years to 60 years. The maximum age on maturity is 65 years. Under this plan the policy money
with bonus is payable at the end of the specified period or on death of the life assured before
expiry of the term. This is the most popular insurance plan. By selecting the term judiciously,
one can provide for old age and get risk cover for the selected term. Under this plan one can
get loan up to 90% of the surrender value after the policy has run for a minimum Two Years.
Minimum Sum Assured under this plan is Rs. 25,000. The premium under this plan can be paid
Yearly, Half-Yearly and Quarterly basis.
For example a person aged 30 years going in for insurance under this plan for 20 years for
Sum Assured 1 lakh will have to pay annual premium of Rs. 4,896/-. He will get Rs.1 lakh
plus bonus at the end of the term. In case of earlier death his nominee will get Rs. 1 lakh plus
bonus thereon subject to all premiums having been paid.
Sukhamaya Jeevan Beema - Without Profit

This plan has been designed to help in lifting the financial burden which generally occurs
during the festival season of the year.
Benefits payable under this plan:
a) 2% of Basic Sum Assured payable on each Durgapuja under enforces policy. The first
installment will be paid after 6 months from the date of commencement.
b) 50% of the Basic Sum Assured irrespective of earlier payment is payable on maturity
date.
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c) 100% of the Sum Assured payable in case of death of the life assured within or after
term of the policy.
d) Minimum Sum Assured Rs. 100,000 and maximum no limit.
e) Minimum entry age is 18 yrs and maximum entry age is 55 yrs
f) Minimum term is 5 yrs and maximum term is 42 yrs
g) Maturity Age is 60 yrs.
h) Policy will not participate in profits
Dhan Varsha Beema Yojana

This is an innovation on endowment policy. The proposer can select term of 15 or 20 years.
Under the 15 years plan, periodical payments are made as under- 25% of S.A. at the end of 5
years. 25% of S.A. at the end of 10 years. 50% of S.A. and bonus on Full Sum Assured at the
end of the term. Under 20 years plan, the periodical payments at the same rate are made at the
end of 10 years, 15 years and 20 years. In case of death "Full Sum Assured" and "Bonus on
Full Sum Assured" is paid under both the plans and the periodical payments made prior to the
date of death are not deducted from death claim. It means that the actual risk coverage under
the plan is 150% of the Sum Assured. Minimum Sum Assured under this plan is 50,000.
Giving the example of proposer aged 30 years again he will have to pay annual premium of
Rs. 4,131 under table no. 21 (15 year anticipated plan) and Rs. 3,014 under table no. 22 (20
years anticipated plan). The premium under this plan can be paid yearly, half yearly, quarterly
and monthly basis
Double Accident Benefit
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One can avail double accident benefit for an amount up to Rs. 4 lakh by paying a nominal
amount of Rs.1=00 per thousand. This facility is provided through additional contract.
Group Insurance Plan

This plan enables employers to provide life insurance benefit to their employees at low rate of
premium. It is a hassle free plan wherein risk coverage is given up to the normal retirement
date without any health requirements up to age 45 and with only declaration of good health
thereafter. The savings made through the simple scheme of administration is passed on to the
employees by substantial reduction in premium.
The minimum age at entry is 18 years and maximum age at entry is 55 years. The S.A.
allowed varies from Rs. 50,000 to Rs. 3,50,000 depending upon the category. The group size
of 50 employees, contribution of minimum of 50% of premium by the employer, joining of the
scheme by a minimum of 75% of confirmed employees on introduction and compulsory
joining by employees recruited thereafter are some of the binding features of the scheme.
Variations in the scheme and its benefits are possible depending on the size and composition of
the group and participation of the employer. The company is trying to sell the above products
in large scale so as to fulfill its mission of providing social security to every eligible citizen and
also for spreading and creating awareness about the need of insurance. With increase in
insurance awareness among the general public and specific target groups the company plans to
bring in new products having greater risk/term insurance components. It also plans to bring in
products providing pensions, health care and plans with multiple add on/optional advantages
and risk covers.
Surakshit Bhavishya
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It is a mortgage redemption plan. It is suitable for the institutions giving loan and the persons
availing loan. It is a limited payment term insurance plan wherein risk is covered for the
specified period at a nominal premium which can be paid in a single installment or in yearly
installments for 2/3rd period of loan. The risk coverage will be approximately equal to the
outstanding equated loan installments on the first day of the year. This coverage will get
reduced in the subsequent years by the amount of equated installments falling due before the
commencement of the New Year which is supposed to have been paid by the lender.
Example: - Age 30 years, Loan/insurance amount 1 lakh
Mode of payment Term of loan

5 years 10 years 15 years
i)Single Premium (i)* (ii)* (i)* (ii)* (i)* (ii)*
1421 1458.50 2711 2854 4134 4430
ii)Yearly Premium payable for 3 years payable for 6 years payable for 10 years
513.50 527.00 518.00 545.50 518.00 555.00
Note: (I) Interest rate 10% or below (ii) above 10% to 15%
The plan provides risk coverage at negligible cost ensuring recovery of loan for the lender in
case of death of the person taking loan. The plan provides financial security to the person
taking loan and to his family and ensures that the asset created by him through loan does not
become liability in case of unfortunate demise of the person before expiry of loan period.
Keta-Keti Jeevan Bima (Shiksha and Vivah)

Every parent dreams for better education marriage and successful life for their offspring’s. In
this context, Nepal Life Insurance Company for the first time in the Insurance Industry of the
country launched a product with the sole aim of providing a tool of having risk coverage of life
of child and making future provision for the education, marriage and financial support for the
wards of aspiring parents. The salient features of plan are:
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Policy can be issued on the life of just-born child till age of eleven, proposed by either of the
parent.
a. The risk on the life of child to start after completion of 7 years of age of child, if his her
age is below 7.
b. In case of child who has completed his age 8 or 9 the risk shall commence from age 10.
c. Minimum Sum Assured Rs. 100000 and maximum Rs. 1000000.
d. The term of this policy is 19 minus age of child at commencement of policy.
e. Maturity age 19 year of child(fixed)
f. The policy vests in the child at 18 years of age.
g. Policy premium frequency: Either yearly, Half Yearly or quarterly with certain
conditions.
h. Premium waiver Benefit available on the life of proposer (either of parent only) with
extra payment.
i. Surrender as per condition but no loan available.
j. No accident benefit available on the life of child.
k. Policy participates in profits.
Chhora-Chhori (Agrim Bhuktani Sawadhik Jeevan Bima)

The plan is an improved version of Dhan Varsha (Money Back) Yojana. It has specially been
designed to provide financial support for higher education and start in life of the child. Main
features are:
a. Policy can be issued on the life of just born child but risk to commence after
completion of 7 years age of child.
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b. In case of child being ensured has completed either 8 years or 9 years of age, the risk
on his life to start after 10 year of age.
c. The term of the policy is 19 minus age of child at the commencement.
d. The policy shall vest in the life of child at age 18.
e. The first installment of payment of 20% of S.A. shall start at age 18 and thereafter
every year at 20% rate for 4 years up to age 22 of the child with bonus if any with last
installment.
f. Minimum sum assured is Rs. 50,000 and maximum Rs. 10,00,000.
g. Benefits like premium waiver start in life and cash option can be availed with certain
conditions.
h. In spite of the facts that periodical installments are paid, the risk on life of the child
remains for full sum assured.
i. The frequency of policy premium payment is either yearly or half yearly or quarterly
with certain conditions.
j. Surrender but not loan allowed with conditions.
k. No accident benefit available on the life of child.
l. Policy participates in profits.
Jeevan Laxmi - Triple Benefit Scheme with Bonus.

The plan is the Triple Benefit Endowment Plan with Bonus payable on the following terms:
Basic Sum Assured with bonus payable on maturity
a. Two times of Basic Sum Assured with proportionate final bonus payable on normal
death under enforce policy within policy term.
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b. Three times of Basic Sum Assured with proportionate bonus payable in case of
accidental death under enforce policy within policy term.
c. Minimum Sum Assured is Rs. 50,000 and maximum Rs. 100,000
d. Minimum entry age is 16 yrs and maximum entry age is 50 yrs
e. Minimum term is 7 yrs and maximum term is 25 yrs or maximum age of 60 yrs
whichever is earlier.
Jeevan Sahara
The plan is specially designed Endowment product to cover the wide range of risk for our
social communities of Nepal:
The sum assured together with bonus is payable on maturity date and full sum assured again
payable on death of life assured after maturity.
a. In case of death before maturity date under enforce policy, the sum assured and
whatever bonus declared is payable.
b. Basic Sum Assured is payable in case of death of the policy holder after maturity of
policy term.
c. Minimum Sum Assured is Rs. 100,000 and no limit for Maximum Sum Assured
depending upon the income source of the proposer.
d. Minimum entry age is 16 yrs and maximum entry age is 65 yrs.
e. Minimum term is 5 yrs and maximum term is 54 yrs or maximum age of 70 yrs
whichever is earlier.
f. The mode of payment is yearly, half yearly or quarterly.
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Customer
Whom to approach for insurance?
Insurance proposals are accepted by 'Branch Offices', 'Sales centers' and 'Corporate office' of
the company. One can, therefore, always approach these offices for purchasing insurance on
one's life. The marketing officials of the corporate office, 'Branch Manager' and 'Agency
Manager' will be ever ready to help.
Basic requirements for insurance
For buying insurance on any one's life the proposer should have insurable interest on the life of
the assured. Insurable interest cannot be determined in terms of moral responsibility of one
person for the other. It is determined by the monetary loss one will have to bear in case of
death of the other. Some example of insurable interest is given below.
1. One's on his own life.
2. Husband and Wife on the life of each other.
3. Parents and Children on the life of each other.
4. Employer on the life of employees.
5. A lender on the life of a debtor.
6. Business partners on the life of each other equal to the partner's investments in
business.
Apart from the insurable interest the proposer should be
a. Legally competent to enter into a contract.
b. Financially capable to pay premium for the "Sum Assured Proposed".
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c. And there should not be anything adverse in his 'Health', 'Habit', 'Occupation' However,
insurance can be given by charging extra-premium if there is anything adverse in
health, habits and occupation within the permissible parameters.
On fulfilling the above eligibility conditions one has to submit the following requirements
for obtaining insurance
a. Proposal form
b. Personal statement of health
c. Age proof
d. Medical report and special medical and pathological reports depending on the sum
proposed, personal history and family history.
e. Proof of income if the sum proposed is large.
f. Deposit amount equal to first premium.
g. Previous insurance particulars.
h. Particulars of insurance on the life of husband if the life to be assured happens to be of
wife does not have earned income and of parents if he/she is a minor.
Basic requirements for insurance and its continuity-

a) Premium should be paid within grace period of 30 days. It is however, accepted up
to 6 months by charging interest. Thereafter premium is accepted only after evidence
of good health and medical reports are submitted and found in order. Within first
two years of policy it is necessary to pay the premium within grace period of 30 days
for risk cover.
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b) It is advisable that nomination is made at proposal stage itself. If it is not made then
it can be made subsequently also. If the nominee is a minor, appointment of
appointee should be made. Nomination can be changed or cancelled anytime.
c) Duplicate policy can be issued on payment of policy preparation charges and
fulfilling the legal requirements. It is advisable that Policy Bond is kept in safe
custody.
d) Age admission is necessary as premium is based on age. If age has not been
admitted at proposal stage it should be got admitted at the earliest, so that there is no
delay in claim payment.
e) Policy bond, discharge form and last premium receipt have to be submitted for
maturity claim payment.
f) For surrender value and loan payments also policy bond is necessary. Application of
the policy holder, discharge form and last premium receipts also are required. In case
of loan, loan agreement also has to be executed.
g) For death claim payment we require an intimation of death by the nominee/legal
heir, death certificate, certificate of cremation, death claim form and discharge
voucher. In case of early death within two years of Commencement of policy or
revival of policy, some additional requirements also are called for, such as attending
Doctor's report, hospital report, employer's certificate etc. Succession particulars
and/or certificate is required if there is no nomination or the nominee has expired. If
there are rival claimants the company will go by the judgment of a court of
competent jurisdiction.
NLIC current investment (NLIC city center)-

Nepal Life Insurance Company (NLIC) commenced operation of NLIC City Center, a
commercial mall built by the company at Kamalpokhari. The Shopping Complex stands five
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storey’s high, is fully air-conditioned, and has a multiplex cinema, supermarket and a wide
range of international brands.
The mall of international standard has 125 showrooms and retail outlets of popular
international branded commodities, says a press release. It also houses 15 restaurants and
offers separate playing areas for children. Speaking on the occasion, senior officials of NLIC
said that the company would develop more commercial complexes in the city with due
permission of the Insurance Board for generating sound returns for its policy-holders and
investors. The company says such projects would also contribute to consumerism, tourism and
employment creation
ADMINISTATIVE TEAM-
The Nepal Life Insurance Co. Limited administrative team is perfectly established group of
well known businessman of Nepal and knowledgeable governing body for Nepal Life
Insurance Company Limited. The group is filled by the experienced body whose experience is
weapons for Nepal Life Insurance Company Limited for competiting other company in the
field of Life Insurance sector and also energetic member whose energy is the cause of getting
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the rapid speed by the NLIC within the shorter time of eight years. The member of the
administrative team are-
Mr. Purushotam Lal Sanghai
Chairman
Nepal Life Insurance Company Limited
Mr. Sanghai, Chairperson of Nepal Life Insurance Company, is the chairperson of prestigious
"Triveni Group" of companies having a chain of industries and commercial companies. He is
one of the most prominent industrialist and businessman of Nepal. He is also actively involved
in a number of social welfare activities.
Mr. Govind Lal Sanghai
Managing Director
Mr. Sanghai, is Executive Director in the renowned business house "Triveni group" which iis
the leading Industrial and Business Group of Nepal operating in International Marketing,
Manufacturing plants, Real Estate, Finance and Bank, Tea Garden etc. He also holds the
position of director in Annapurna Vegetable Products P. Ltd., Vishwokarma Cements P. Ltd.,
Shree Pashupati Cements P. Ltd., Triveni Dal & Oil Industries P. Ltd. and Nepal Tea
Development Corp. Ltd.
He is corporate advisor in Prudential Insurance Co. Ltd. He is National Council Member in
Confederation of Nepalese Industries (CNI). He is also a member of European Chamber of
Trade, Commerce & Industry- Nepal and German Chamber of Commerce & Industry.
Mr. Ganga Bahadur KC
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Director
Mr. K.C. is a renowned Executive of Nepal. He has been the Chairperson of Nepal Insurance
Co., Director of Nepal Bank and Nepal Industrial Dev. Corporation, Director of Biratnagar
Jute Mills, Director of Morang Sugar Mills. A present he is a Sub-Committee member (Life) of
Beema Samiti Nepal.
Mr. Ram Avtar Agrawal
Director
Mr. Agrawal is an Engineer by profession. Prior to his retirement from the service of His
Majesty's Government he held the post of Executive Director of Water Energy Commission
and the Project Manager of a number of Irrigation Projects of Nepal. He is actively associated
with a number of social service organizations working in Katmandu and other parts of the
country. He holds prestigious Gorkha Dakshin Bahu award for outstanding works in
Chaurjahari Tar Irrigation Project at Rukum District.
Mr. Ramesh Gupta
Director
Mr.Gupta is promoter and shareholder in Mahalaxmi Finance Ltd., Prudential Insurance Co.
Ltd. and Hams Hospital. He has bussiness affiliation with Ganapati Vanspati P. Ltd., Lumibini
Industries P. Ltd., Lumbini Vidyut Udyog P. Ltd. and Nuplast Industries P. Ltd. He is also
associated with Lucky Nepal Co. P.Ltd. and Universal Trading Centre.
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Mr. Kamlesh Kumar Agrawal
Director
Mr. Agrawal has been a Public Director of Rastriya Beema Sansthan and Chairman of Nepal
Foundary Industry Limited.Currently he is Managing Director of Robin Traders P. Ltd., Jayant
Plastics Industries, Robin International P. Ltd., Robin Commercial Center, Robin Foaming and
Paper Products P. Ltd. He is Executive Member of Nepal Rastriya Marwari Parishad,Agrawal
Sewa Kendra,Nepal Chamber Of Commerce and Life Member of Marwari Sewa Samiti,
Katmandu.
MANAGEMENT TEAM
Mr. Manoj Kumar Bhattarai
Chief Executive Officer
Mr. Bhattarai, holds Masters Degree in Business Administration and Commerce (Specialized
in Accountancy with Finance, Audit, Statistics, Personnel management, Corporate planning)
from Tribhuvan University. He has gained valuable experiences from national as well as
international organizations. He has undertaken trainers training on Faculty Development
Program conducted by Manila based Asian Business Consultants (ABC). Before joining NLIC
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he was working for Enabling State Program (ESP), a development program under Department
for International Development (DFID) Nepal as Finance and Admin Manager.
He worked in various departments and branches of Nepal Industrial Development Corporation
(NIDC) for about twenty years. He was awarded with Best Performing Staff Award of NIDC
in 1995. Mr. Bhattarai had served as UNV Specialist Management Advisor under United
Nations Developments Program (UNDP) in Malawi for Ministry of Local Government of
Malawi. He is involved as Resource person and faculty for Kathmandu Frontier Associates
(KFA), Bankers Training Center, Nepal Rastra Bank and various training institutes and banks.
He was also involved as visiting faculty for Kathmandu College of Management (KCM),
Kathmandu University and Apex College, Pokhara University.
Mr. Bhattarai has ample experience of conducting seminars and workshop for Enabling State
Program (ESP) / DFID Nepal, Alternate Resource Centre (ARC), Westminster Foundation for
Democracy U.K. Foundation for Development Management (FDM), Save the Children US,
and Management Association of Nepal (MAN), Nepal Industrial Development Corporation
(NIDC), Management Research and Training Academy (MRTA) Nepal, Lutheran World
Federation (LWF) Nepal, UNICEF Nepal, Nepal Tourism Board, Salt Trading Corporation
Limited Nepal, NGO Federation Nepal, Dalit Empowerment and Inclusion Project (DEIP)
Nepal as a facilitator/resource person. He conducted workshop for Nepal Tourism Board.
Mr. Bhattarai also completed various research and studies in the capacity of consultant/team
leader for research study projects of Social welfare Council, Foundation for Development
Management (FDM), Lutheran World Federation (LWF/N), United Nations Office for the
Program Support (UNOPS), Department for International Development (DFID) Nepal,
Institutional Reform and Informal Sector (IRIS), University of Maryland, USA, Management
Research and Training Academy (MRTA). Mr. Bhattarai is a life member of Management
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Association of Nepal (MAN), Nepal AOTS Alumni Society (NAAS) and Child Development
Society (CDS).
Mr. Sushil Kumar Chaudhary
Deputy General Manager
Mr. Chaudhary holds Masters Degree in Commerce (M.Com). He has a long experience of
insurance marketing. Before joining NLIC he worked as an agent for other insurance
companies for more than 10 years. He joined Nepal Life Insurance Company as a Branch
Manager of Biratnagar Branch in June 2001. Before joining NLIC he was working as a
Manager in Rastriya Banijya Bank Limited.
Mr. Agam Mukhia
Divisional Manager
Mr. Mukhia joined Nepal Life Insurance Company as a Manager in Information Technology
department. He has been persistently involved in the Development of the software since the
establishment of the company. He led the development team in analysis, development and
implementation of the insurance software which is currently being used at Nepal Life
Insurance Company Ltd. He has a rich experience in software programming, web based
programming, data mining and data analytics. He was working as a data analyst for
D2hawkeye (www.D2Hawkeye.com) an American Data Mining and Software Development
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Company. He joined D2Hawkeye Company as a senior database engineer and worked for 2
years and 9 months before joining Nepal Life Insurance Company Ltd.
He started his career as an e-Commerce Programmer from Mercantile Communication
(www.mos.com.np) and later promoted to software programmer. As a software programmer
he was a team member to develop and support the Banking Software (PumoriPlus) and Office
Automation Software (PumoriOffice). As a Freelance programmer he has also developed
software like Micro Insurance (medical insurance software) for International Labor
Organization and Educational Consultancy Software (being used by renowned consultancies in
Katmandu). He holds Masters Degrees in Physics and Computer Applications.
Mr. Kamal Panthi
Divisional Manager
Mr. Panthi holds Masters Degree in Business Administration. He worked as Manager in
Gorkha Finance Ltd., Hattisar, and Kathmandu for 6.5 years as Manager. During the tenure of
work in Gorkha Finance, he worked in various capacities as head of Account, Finance, System
and Operation Departments. He also has the experience of working in Ministry of Information
& Communications as a Database Administrator for 2 years. He has acquired various
Management, Computer Software/Hardware Trainings. As a Consultants he provides various
training in Management and Computer Software Developments. Currently, he is in-charge of
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300 Millions Multiplex Buildings Project at Kamalpokhari. He is also responsible for the
Investment and Operations of the Company.
Mrs. Usha Pant
Manager
Mrs. Pant holds Masters Degree in Political Science. She has a rich experience of working in
Rashtriya Beema Sansthan for 26 years in the areas of Policy Servicing, Underwriting, Group
Insurance, Claims and Reinsurance. She has under taken - 10 weeks Life Insurance Training,
College of Insurance, Mumbai
1 week Life Insurance Training on Market Strategy, National Insurance Academy,
Pune, Mumbai.
1 month of Management Training in Central Bank of Nepal She has also visited many
life insurance companies in Philippines during her tenure of service at Rastriya Beema
Sansthan.
Mr. Rameshwor Shrestha
Manager
Mr. Shrestha holds Masters Degree in Business Administration and Commerce. He has seven
years of experience in Nepal Life Insurance in the areas of overall financial Management,
underwriting, Insurance marketing, Agent Training, accounting. He has good experience in
financial areas of Life Insurance and related matters.
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He has undertaken Leadership for Business Excellence Training conducted by Institute
of Bank of management.
TDS installation Tax and Income from Remuneration training, Charter Institute of
management and Accountant Pvt. Ltd.
Nepal Accounting Standard training, Charter College of Management and Accountant
Pvt. Ltd.
Office management training program conducted by Management Association of Nepal.
Omprakash Pudasaini
Manager
Mr. Omprakash Pudasaini holds Masters Degree in Business Administration. He has gained
valuable experiences in the field of trade and commerce. Before joining NLIC he was working
in Nepal Chamber of Commerce (NCC) as Joint Secretary. During his stay at NCC he has
represented the office in various forums and taskforces and he was exclusively looking after
Revenue, Import, Export and Industry committees formed under the NCC Executive board. He
has experience on preparing proposal on economic issues and to conduct impact study of
various fiscal policy and business related legislations. He joined Nepal Life Insurance
Company Ltd. as a Company Secretary Mr. Pudasaini had attended various seminars and
workshops related to trade and commerce
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Seminar for Business Support Organization on How to promote export from the
developing countries to European market organized.
Promoting Imports from Developing Countries (CBI) Rotterdam, the Netherlands.
Workshop on “Role and Responsibility of Managers in improving Industrial Relation"
jointly organized by ILO FNCCI.
Three days Workshop on "Employees welfare fund" organized by Ministry of Labor
and transport management.
Workshop on Action plan development workshop on WCO SAFE Framework of
Standards, jointly organized by World Customs organization and Department of
Customs.
Mr. Mahesh Niraula
Manager
Mr. Mahesh Niraula is pursuing Masters Degree in Commerce. Mr Niraula was working as
Branch Manager in Nepal Life Insurance Company Ltd. since the establishment of company.
Before joining NLIC, Mr Niraula has working experience in Duger Organization and Chaudary
Group as sales executive. Mr. Niraula has a long professional experience in sales and
marketing. He has a good public relation. Effective communication and negotiation skills have
made him successful in the field of insurance marketing.
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Factors using for analyze the data
Total population -- 28196000 as July 2009 UNICEF survey
Literacy -- 48.6%
Data Analysis
The following data has been collected on the basis of the study on the “NEPAL LIFE
INSURANCE COMPANY (SAVING, ONVESTMENT OR?).
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The following table shows the different classification of the respondents :-
Q:- Which mode of Investment you like most?
Table-1
Instruments No. of respondents Percentage

Insurance 32 34 %
F.D. with Bank 1 1%
Dhukuti 37 39 %
Real estate 20 21 %
Other 5 5%
Total 95 100
Most of the respondent (39%) is interested towards Dhukuti (A local investment plan)
and after that 33% like to move with Life insurance. Also it is found that investment in
real estate is in third position.
It is also found that most of the people invest in Dhukuti and benefit obtains from
Dhukuti, is invested by them in real estate. Thus the combination of Dhukuti and real
estate is nicely balanced by the people.
Dhukuti is short term investment plan thus most of the people are attracted towards this
to gain much money in shorter time.
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Very few respondents are interested towards F.D. with bank due to the less interest rate
provided by the banks.
Conclusion:-
On the basis of data given in the first table, Insurance is in second position with the 34 %
people. I found the people make a combination of Dhukuti and Real estate which cover almost
60 % of the investment market. Even the position of Insurance is not poor but most probably it
can cover the biggest market of investment if some attention of Insurance board is given to the
Insurance sector.
The responses indicate that people like more short term investment and the earnings from such
short term investments is use by them to purchase the property. Thus NLIC should think about
to launch the short term insurance plan to attract the peoples.
Q:- If Insurance, than which Company?
Table No: 2
Company No of Respondents Percentage

NLIC 18 56 %
R.B.S. 2 6%
LIC Nepal 7 22 %
Others 5 16 %
Total 32 100
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Total Respondents ( Percentage)
Analysis -
After study the table 2 it can be said that out of 32 policy holder, 56% are customers of NLIC
and 22% are of LIC Nepal, which shows that the NLIC have a very healthy part of Insurance
Market of Nepal. Other players of the market are far away from NLIC.
Conclusion:-
On the basis of table 2, it can be said that NLIC is quite more popular between the people than
the other player of the market, which is relaxed news for the Nepal life insurance company ltd.
But is hard to accept that in city like Butwal awareness programs are not much effective so that
out of 95 respondents only 32 are insured, it must be increased.
NLIC as well as Insurance Board should implement some revolutionary steps to increase the
participation of people towards insurance sector.
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Q:- Age wise classification of respondents-
Table- 3
Total Respondents Insurance Policy Holder
NLIC
Respondent
Age Respondent Percentage Respondent Percentage
s
Below 37 39 % 6 19 % 4
30
30 to 40 32 34 % 20 62 % 11
40 to 50 18 19 % 5 16 % 4
Above 8 8% 1 3% 0
50
Total 95 100 32 100 18
Analysis:-
In this portion of questions it is found that out of 37 respondents from age group of
below 30 very few percentage (16 %) are insured, in sucha mannger in the age group of
30 to 40 a hudge percentage (63 %) are insured. In age group of 40 to 50 only 28 % and
in above 50 year’s of age 13 % have life insurance policy.
On the other hand, It can be said that Life insurance is more popular in the age group of
30 to 40 and than between age group of 40 to 50.
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Even thoug According to Butwal, litreacy ratio is high and the people of age group of
between 20 to 30 engage themselfs in the profession mostly in the teaching. On the
basis of such information very few people in the age group of below 30 are intersed
towards Life insurance. They may be potential customer for Life insurance companies.
Now after comparing all insurance policy holder with the NLIC, I found that out of 95
policy holder 6 are insured in the age group of below 30 and among these six people 67
percent insured them self in NLIC, which shows that people of below 30 years of age
are very much attracted towards NLIC.
In similar way in age group of 30 to 40 twenty people are insured and among these
twenty people 55 % people are insured through NLIC.
In the next category 40 to 50 years of age, only five have insurance policy and among
them maximum are insured in NLIC. Unfortunately in the age group of above 50 years
of age I could not found any people who have Insurance policy of NLIC.
Aggregately NLIC policies are equally popular among the different age groups rather
than the other companies.
Conclusion:-
Insurance policies of NLIC are equally popular among the all age groups.
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Q:-Gender wise classification of Insurance Policy Holder
Table: 4
Total Respondents Policy Holder
Gender Respondents Percentage Respondents Percentage

Male 62 65 % 24 75 %
Female 33 35 % 8 25 %
Total 95 100 32 100
From the Table 4, I analyze that,
Among the total respondents 62 are male and 33 are female.
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In case of Insurance policy holders, out of 32 maximum respondents (25) are male and
remaining 8 are female, which indicate that Male have dominate ratio of insurance
rather than female.
Now in the comparative study of both ratio, I found that out of male respondents, 24
(37 %) respondents are insured and among the 33 female respondents 8 (24 %) are
insured. Which indicate that male is quite more attractive towards life insurance, even
among the respondent a healthy percent are working women.
Conclusion:-
From the table 4 it can be analyze that after comparing the genders attraction of male towards
life insurance is quite more than the women, even in case of NLIC maximum people are
attracted towards insurance plans of the company. Company is somewhere behind to convene
the female as compare to other player of the market. Yet there is no much difference in the
result of male and female attraction.
Q:- Nature of Job wise classification

Tabel-5
Total Respondents Policy holder

Type Respondent Percentage Respondent Percentage
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s s
Govt. 31 33 % 14 44 %
Private 47 49 % 13 40 %
Self Employee 17 18 % 5 16 %
Total 95 100 32 100
COMPARATIVE STUDY POLICY HOLDER WITH NON POLICY HOLDER
Analysis-
Among the total 95 respondents 31 are government employees, 47 are private and the
rest 17 are self employee.
During my report I found that out of 31 govet employee respondents 14 employee have
insurance policy, which indicate that life insurance is popular among govt. Employees.
The reason behind that i found that govt. Made compulsory insurance in some of the
govt. Sector. In similar ways in private sector, otu of 47 respondents only 13 are
insured, which shows less popularty of insance among private employees. In case of
self employee,5 are insured out of 17 respondents.
In comparison i analyze that among Govt. Employee 45 % are insured and rest 55 %
are not and in such manner in private sector 28 % insured and 72 % are not and in
sector of self employeed 29 % insured and 71 % not.
With the help of all above information I analyze that Life Insurance is quite more
popular among the government sector, less in the private and between the self
employees, It means the Insurance sector have more potentiality in the private and
selfemployees.
Conclusion:-
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In aggregate mostly Government employee are attractied towards life insurance policies, the
participation of private employee is less. Comparitive study shows that out of government
employee 45 % having the insurance policy even in some government sector insurance made
compulsory. Now in case of private employee participation, out of 47 sample of private
employee only 27 % are insured which is very less. The main reason behind this is, the
attraction of private employee towards Dhukuti and the awareness level of people is less
towared the life insurance.
Q:- Type of Insurance policy do they have.
Table-6
Total Policy Holder NLIC Policy holder

Polciy Respondent Percentage Respondent Percentage
s s
Whole Life 4 13 % 1 6%
Endowment 15 47 % 12 67 %
Money Back 12 37 % 5 27 %
Term 1 3% 0 0%
Total 32 100 18 100
Analysis:-
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I found that among the all respondents who have life insurance policy, Endowment
policy is more popular among the people with capturing the hudge part of insurance
market (47 %), than after Money back policy with 37 %. Very few percetn of people
like Whole life and Term insurance policies.
In the comparison of NLIC with other players of market I found that, Endowment
policy of NLIC is more popular than the other companies endowment policies, in
similar ways Money back policy of NLIC given the same result.
Conclusion:-
Among all respondents Endowment and money back policies are more popular and in case
NLIC also Endowment and Money back policies are more popular.
Q:- May Insurance sector is an attractive investment sector?
Table-7
Total Respondents Policy Holders

Option Respondents Percentage Respondents Percentage
Yes 59 62 % 18 56 %
No 16 17 % 6 19 %
Don’t know 20 21 % 8 25 %
Total 95 100 32 100
Analysis:-
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From this information I found that among the total respondents ( 95) maximum people
(65 %) are thinking that Insurance may be an attractive sector for Investment, very few
people given the ans in negative form. Which shows that among the people Insurance
sector has make the place as a mode of Investment, and they are looking the Insurance
as a mode of their investment.
On the other hand, In the views of Policy holder 56 % of the policy holder are looking
the insurance as a mode of there investment and as an attractive investment sector, 19
% are saying No,.
Overall the people who are looking the life insurance sector as a mode of investment
are in majority.
Conclusion:-
Among the total respondents as well as the total policy holders, both are agree to that the
insurance sector may be an attractive investment sector for futer, which indicat the availability
of potentiality for the insurance business in the market of Nepal.
Q:- What is the primary focus for taking Insurance Policy?
Table-8
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Option Respondents Percentage
Tax Benefit 8 24 %
Saving for retirement 3 8%
Income Generation 17 52 %
Children Education 1 4%
Others 3 12 %
Total 32 100
Analysis:-
I found that maximum people (52%) among the insurance policy holder are looking
life insurance as a mode of Income generation, and only 24 % are looking it as a mode
of tax saving, other benefits of Life insurance is negligible by them.
This is because most of the banks and finance companies are providing the risk transfer
benefits and similar benefits as insurance companies are providing to their customers.
Conclusion:-
This is the most important question for any insurance company. Here maximum people are
taking the insurance policy for Income generation and then another large group is taking the
insurance policy for getting the tax benefit.
Other important benefits of insurance is unknown by the people or they do not have any
interest in other benefits. In both a way there is a loss of Insurance sector as well as to the
NLIC also. Thus Insurance board and NLIC should aware the general people towards the other
benefits of life insurance.
Even it is true that some of the banks are providing the financial security during open the
account with them. This can be a better thing for the insurance company, because in such a
way they are introducing the people with life insurance.
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Q:- How much of annual income people use for saving?
Table-9
Total Respondents Policy Holder

Investment Respondents Percentage Respondents Percentage
Less than 10 % 14 15 % 4 12 %
10% - 30% 62 65 % 18 56 %
30% - 40% 16 17 % 9 28 %
Above 40% 3 3% 1 4%
Total 95 100 32 100
Analysis:-
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I found that among total respondents most of the respondent (80%) are saving 10% to
40% of his annual income, which shown the saving behavior of the people. Thus the
company can use this behavior for sale more insurance policies by introducing the new
policies according to the demand of customers.
In comparison, in the saving group of Less than 10%, out of 14 respondents only 4
have insurance policy, it means in this group only 29% people are insured, rest 71% are
uninsured, thus this group can be a better target for insurance.
In same way, saving group of 10% to 30%, out of 62 only 18 are insured, which is very
less. In this saving group insurance must be more popular.
But in the saving group of 30% to 40%, out of 16 respondents 56% are insured, which
is quite satisfactory.
Q: - Which type of Investment people like most?

Table-10
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Type Total Respondents Percentage
Short term 70 74 %
Long term 25 26 %
Total 95 100
Analysis:-
Here it is found that 74% of total respondents like short term investment rather than long term.
This may be due to the cause of instability of government or fluctuating political condition.
People are attracted towards more in short term investment rather than the long term, thus
company should include some factor of short term during making the insurance policies.
Q: - If you have to take another insurance policy, than which company you
would like to prefer?
Table-11
Company Respondents Percentage
NLIC 39 41 %
LIC Nepal 18 19 %
Asian Life Insurance 8 9%
Unity life insurance 25 26 %
ALICo. 5 5%
Total 95 100
Analysis-
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It is better to NLIC that out of 95 respondents 41% are potential customer but newly entered
unity life assurance Company growing vastly and nicely promoted in the mind of customer,
thus this can give a tight competition to the NLIC as well as to other Insurance player of the
market.
Q:- What is greatest fear I investing in life insurance?
Table-12
Total Respondents Policy holder

Fear Respondents Percentage Respondents Percentage
Losing Money 26 27 % 3 9%
Not making enough money 44 46 % 19 59 %
Political environment 11 12 % 4 13 %
Others 14 15 % 6 19 %
Total 95 100 32 100
Analysis-
Out of total respondents (95 respondents) 46% are agree in the view that the greatest
fear regarding the life insurance is not making enough money. According to them as the
time period of policy the provided bonus by the company is not sufficient than the short
term planning.
In case of Insurance policy holder, the result and views are same, out of 32 policy
holder 59% think that insurance is not a medium of making enough money.
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In case of policy holder very few people have fear for losing money through life
insurance.
Q:- Why you chose NLIC for Insurance?
Table-13
Reason Respondents Percentage

Due to performance 8 44
Due to agent 7 38
Other 3 18
Total 18 100
Analysis-
After analyzing the responses given by the insurance policy holder, it can be conclude that
respondents have given the mix responses.44% of the respondents have chosen NLIC due to its
performance, and 38% like this company due to close relation of Agent or the force created by
Agents. And 18% of them have their own individual responses.
Even this Time Company getting benefit, but company should think about its long range plan,
which is possible only through choosing well and experienced agent, otherwise potentiality of
ustomer can be reduced through pressure created by the agent for purchasing the NLIC
policies.
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Q: - Are you satisfied by the service delivered by the company (NLIC)?
Table-14

Yes 13 72 %
No 5 28 %
Total 18 100
Analysis:-
During asking the questions, I found that 72 % of the NLIC policy holders are satisfied with
NLIC performance, here satisfaction is related with the service delivered by the company, but I
found 28% of the policy holder given the answer in negative form. I tried to analyze the cause
of such dissatisfaction and found that the main cause of dissatisfaction is the official
formalities of companies during taking the loan from the company.
Few of the people said that company did not reminder them about the renewals of policies due
to which they are bearing the fine during submitting the insurance premium.
Q:- How you listened about NLIC?
Table-15

F.M. 5 5%
T.V. 23 24 %
Agent 45 48 %
First time 22 23 %
Total 95 100
Analysis:-
Through this question I tried to find about the advertisement policies adopted by the company.
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I found that very few people (only 5 %) get the name of the company through F.M. radios,
similar ways only 24 % of people listened about NLIC through T.V. and 48% of people
listened about the company by the agent.
23 % of the people listened the name of the company for the first time by me. All these
responses are indicating the poor advertisement policies of the company.
Findings
During the course of survey in Butwal, District Rupendehi (Nepal), I found that the most of the
people are using Dhukuti, Education sector and Insurance as their mode of Investment.
It was also found that large percentage of people (47 %) invest in insurance sector for Income
generation, after that another large percentage of people invest in insurance sector for getting
the tax benefit and few percentage of people invest in insurance sector for getting the financial
security for their family.
The research is based on Butwal and I have taken the sample as a representative of Rupendehi
District. From the survey I found that:-
Maximum people are looking Dhukuti as a mode of their investment and then
preferring NLIC for investment purpose. Real estate sector also play the role to attract
the big part of people.
People are looking NLIC for Investment purpose rather than other players of the
market. The second priority is given by them to LIC Nepal.
Very few people of age group of below 30 years of age like insured them self. A person
between the age group of 30 to 40 seems more attracted towards life insurance. People
between age group of 40 to 50 years are looking more attractive rather than the age
group of below 30 years.
Male have more Insurance policies than the woman, but the participation of woman is
quite satisfactory.
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Participation of private employees in Life insurance is very less, but in comparison
more Government employees and self employee are using insurance service.
Aggregately Endowment and money back policies have covered biggest market share
of insurance market and In NLIC also endowment polices and money back polices are
more popular among the people.
Most of the people agree that Insurance sector may be an attractive investment sector.
People of Butwal are purchasing the insurance policies for the income generation and
for the tax benefit only. Other benefits are ignored by them.
The people who are saving 10% to 30% of their annual income have shown much
interest to purchase the insurance policies.
A huge percent of people like to invest in short range plan, even they are purchasing the
insurance policies. Perhaps this may be one of the reasons of attraction of people
towards Dhukuti.
Even people are purchasing insurance policies as a mode of their investment for income
generation but they have a great fear that insurance is not able to make enough money.
NLIC policies are more popular among the people rather than the other due to the
performance of the company and the efforts of the agents.
Most of the people are satisfied by the service provided by the company, but few
people are dissatisfied by the service. They are expecting more than this time. Such
dissatisfaction may be the barrier for the NLIC in future.
The company’s (NLIC) advertising policies are week. Agents are playing greatest role
to advertise the insurance policies and to aware the people with life insurance. The
other powerful medium are seem far from the company touch.
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CONCLUSION
DHUKUTI is more popular among people due to the short run investment plan.
People invest DHUKUTI and the gained money is invested again in real estate.
Most of the people are looking Insurance as a mode of Investment for Income
generation rather than assuming other benefits like financial security, education,
saving and loan etc.
People of Different age group are given similar responses to the NLIC.
Private employee participation is comparatively less in Insurance sector.
Company performance as well as agent effort are main reason behind the attraction
of people towards NLIC but some of the customer are not satisfied by the service
given by the NLIC in terms of paper work, reminder of insurance premium, loan
facilities etc.
Advertising policies of company are not sufficient.
NLIC is successful to cover a big part of insurance market by providing the
satisfactory service to most of their customers; even advertising policies are not
enough to interact the people of rural as well as urban areas.
Most of the respondents prefer NLIC for insurance in future.
Rural areas are far from the advertisement and awareness programs. In some areas
people are first time the name of NLIC, which indicate about NLIC’s ineffective
advertising and awareness programs.
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SUGGESTION
Comparatively the place of NLIC is better than other private as well as public player of the
market, but through this report I found some of the area which may help the company to
increase its market share. These areas are presenting by me in the form of suggestion to the
NLIC.
As I found the combination of DHUKUTI and real estate is very strong and a
biggest part of the market (near about 60%) is captured. Comparatively less people
are using Insurance; it shows their strong favor for short term invests plans. Thus
short term investment plans should also introduced by NLIC to grapes the available
opportunities.
Most of the people are taking the insurance policies due to the agent and with the
relation of agents which may good in short term but not for the long term. NLIC
should make their own image by introducing the product differentiation and service
performance.
For making the insurance policies, research work should be conducted to know the
views of people and their expectation from the life insurance.
It is difficult to neglect the other benefits of life insurance, so awareness programs
should be introduce to inform the other benefits to the people.
People of rural areas must be targeted by the company as well as agents.
Risk bearing facilities of companies are covered by some of the banks and some
finance companies, thus some other factor should be added with policies to
differentiate the product.
A group of people is not satisfied by after sale service of the company in terms of
loan facilities and reminder service for renewable. Therefore reminder service for
insurance premium should be introduced by NLIC through using different mode
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like SMS, mailing and postage service. This may help to retain the customer as well
as attract the potential customers also. Today’s market is customer and service for
the customer oriented, so that customer care service should be made available for
customer quarries.
Through the survey I found that very weak point of the NLIC is advertising. In
some area I found that many people are first time listing the name of NLIC. Thus I
would like to strongly suggest the company to adopt the effective advertising mode
like outdoor advertising plans, print media etc.
Also supportive advertising mode should be used by NLIC to aware the people
about insurance.
Market should be segmented and each market segment should be treated differently
for the advertising according to the characteristics of the market..
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[2]
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[2]
Website www.nlic.com.np
www.bsib.org.np
www.nepalnews.com.np
www.kantipuronline.com.np
www.nepalvisitors.com
Journals NLIC journals & Annual Report
NLIC agent manual
ABBRIVATIONS
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[3]
BC Before the Christian era; used following dates before the supposed year
Christ was born.
NLIC Nepal Life Insurance Company
LIC (Nepal) Life Insurance Corporation of Nepal
ALI Asian Life Insurance
NLI National Life Insurance
ALICo American Life Insurance Company
PLI Prime Life Insurance
RBS Rastriya Bima Sansthan
GLI Guras Life Insurance
SLI Surya Life Insurance Co. Ltd
UNICEF United Nations International Children's Emergency Fund
Questionnaire
Questionnaire completed by: ……………………………………………………
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[2]
Telephone No.:- ……………………………………….…………………….........
Email address:-……………………………………….…………………….……..
Age: -……………………. Sex:-………………….
Education:-…..…………. Profession:-…………..
1) You are a
a) Govt. employee b) Private employee
c) Self employee
2) Which type of investment do you like?
a) Insurance b) FD with bank
c) Real state d) other
e) DHUKUTI
3) If Insurance than which company?
a) NLIC b) Rastriya Bima Sansthan
c) LIC Nepal d) Other
4) Which type of Insurance Policy do you have?
a) Whole life b) Endowment
c) Money back d) Term insurance
5) Why you have chosen this company for insurance?
a) Due to performance b) Due to agent
c) Other
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[2]
6) May Insurance sector be an attracting investment sector?
a) Yes b) No
c) Don’t know
7) What is your primary saving focus?
a) Tax benefit b) Retirement
c) Children education d) other
e) Income generation
8) What is your greatest fear in investing?
a) Losing money b) Other
c) Not making enough money to reaching your investment goal.
d) Political instability
9) Which type of investment do you like?
a) Long term b) short term
c) Both
10) How much annual income do you use for saving?
a) Less than 10 % b) 10% -30 %
c) 30% – 40 % d) Above 40 %
11) If you will have taken another Life Insurance Policy than which company will you
prefer?
a) NLIC b) LIC Nepal
c) Unity life International d) Asian Life Insurance
e) ALICo.
-, A lig a rh
[3]
12) Are you satisfied by the service delivered by the company [NLIC]?
a) Yes b) No
13) How you have listened about NLIC?
a) Through F.M. b) Through T.V.
c) Through Agent d) First time listening
Place……… Signature of the interviewer
Date…………
-, A lig a rh
[5]

Nlic Project Work Report From Eashwari Bhandari (ABIMS)

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Nlic Project Work Report From Eashwari Bhandari (ABIMS)

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A ROJECT REPORT

Life Insurance for every one

AL-BARKAAT INSTITUTE OF MANAGEMENT

INDURSRY GUIDE FACULTUY GUIDE

Chapter – 1 Executive Summary of the project 6

Chapter – 2 Introductions 8-11

Chapter – 3 Industry Overview 12-30

Chapter – 4 Organizational Profiles 31-63

• Vision & Value

(NLIC Insurance plans)

Chapter – 5 Main Report 64-94

Chapter – 6 Bibliographies 95-100

Al- Barkaat Institute of Management Studies, Aligarh (Uttar-Pradesh).

NEPAL LIFE INURANCE COMPANI LIMITED Butwal.

EASHWARI PRASAD BHANDARI

understand how theoretical knowledge will be applied in the practical field.

fledged study and is based on my original research and investigation.

people. This project work of mine “LIFE INSURANCE “SAVING, INVESTMENT OR ?”

department without which this project would have been complete.

opportunity to do a project in an esteem organization like “Nepal Life Insurance Company

course of my interface with them.

UMAPATI POKHREL (Branch Manager, Butwal), Mr. SUSHIL KUMAR CHAUDHARY

spite of their busy schedule`

EASHWARI PRASAD BHANDARI

INVESTMENT OR. “Finding awareness levels

of life insurance with special emphasis on NLIC

vis other player in market.

NAME OF THE COMPANY Nepal Life Insurance Company Limited

PLACE OF THE WORK Butwal.

ORGANIZATION GUIDE Mr. Umapati Pokhrel (Branch Manager- Butwal)

Mr. Sushil Kumar Chaudhary (DGM- Corporate

INTERNAL GUIDE Mr. Faraz Ahmad

MAJOR OBJECTIVE To know which mode of investment is most

popular among the people and how they are

looking Life insurance policies.

the limitations are taken out from the survey.

opportunity to understand the views of people towards investment and savings.

investment and saving sector due to the political instability.

OBJECTIVE OF THE STUDY-

1. To know about the modern techniques of investment in Nepal.

2. Analyze the causes of acceptance level of insurance plan of Nepal Life

3. To know the view of Nepalese people towards life insurance.

Sampling Type -Private Employees,

➢ Data Collection Method –

- Business news papers, Magazines, Annual reports.

➢ Period of study: 16th June 2009 to 4th August 2009.

the scope of the study.

the information regarding insurance form office.

role of barriers towards collection of information through respondents.

➢ Basically Insurance is known as means of protection.

➢ Insurance is an agreement by which one makes regular payment to a company who

paid an agreed sum if damage, loss or death occurs.

periodic payment. An individual contract is known as insurance policies.

➢ A system under which individuals, business, and other organizations or entities, in

exchange for payment of a sum of money (called an insurance premium), are

resulting from a specified event.

or harm arising in specified contingencies, as fire, accident, death, disablement, or the

like, in consideration of a payment proportionate to the risk involved

loss that occurs under the terms of the contract.

financial based on sum assured and premium paid there in.

well as help survivors by making some payments.

The growing years: