According to the Oxford Dictionary, insurance is “an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for the payment of a specified premium.”
Thus, insurance is a way of safety for any predictable or unpredictable probable loss. Insurance is beneficial because it provides security, an old-age pension, an investment or saving mechanism, and tax benefits. Some of the major insurance companies are listed in brief below.
Types of Insurance in Nepal
Life insurance: Life Insurance is the insurance against the risk associated with a person’s life. It is a way to reduce or manage risk. It provides financial protection in the event of a disaster. Life insurance offers financial support to the family of the deceased.
Non-life insurance: Non-life insurance covers losses brought on by various circumstances, including accidents, illnesses, fires, and other natural or artificial disasters.
Reinsurance: Reinsurance is stop-loss insurance. Reinsurance is the process through which insurers, through a specific arrangement, transfer sections of their risk portfolios to other parties to reduce the possibility that they may have to pay a significant liability due to an insurance claim.
List of 10 Insurance company in Nepal
American Life Insurance Company Limited (Met Life):
Asian Life Insurance Company Limited
Gurans Life Insurance Company Limited
Jyoti Life Insurance Company Limited
IME Life Insurance Company Limited
Life Insurance Corporation(Nepal) Limited
Mahalaxmi Life Insurance Company Limited
National Life Insurance Company Limited
Nepal Life Insurance Company Limited
Reliance Life Insurance Limited
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