Insurance is a newly emerged business for Nepal. Although there were some social and cooperative businesses providing security to customer form ancient time, modern insurance business started by some Indian insurance companies in the early times. They were mainly focused in providing insurance facilities especially for import business increased in India. Therefore, the history of insurance business is definitively very short in Nepal.
As the first insurance company, Nepal Mal Chalani Tatha Bima Companmt Ltd. was estavlished in 2004 B.S. This insurance company can be taken as the first step or milestone of Nepalese insurance history, with authorized capital of five lakhs. It was later converted into Nepal Insurance and Transport Company Pvt.Ltd in 2016 B.S. This was again renamed as Nepal Insurance Company Ltd in 2048 B.S. Basically, the company is concentrated in non-life insurance business. Before the establishment of that company, there were some branches of Indian insurance companies operating to provide insurance services. As a private insurance company with limited capital, the Nepal Mal Chalani Tatha Bima Company Ltd. was not successful to provide all types of insurances facilities all over the country. Foreign large insurances companies were doing well business in Nepal through agents. United India Insurance, Hidustan General Insurance, Starling insurance, Ruby General Insurance, Oriental Fire insurance had branches in Nepal to provide insurance facilities until 2024 B.S.
Considering the role of insurance business in the expansion of economic activities and alarming outflow of money form the country, the government of Nepal felt the need of large and well organized insurance company within the country. Then immediately the HMG established Rastria Bima Sansthan under the Insurance Act 2025. This insurance company is totally financed by the goverment to provide all types of insurance perils, which is essential for economic development. This insurance company has alone provided various types of insurance facilities for about 2 decades in Nepal.
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