AN INTERNSHIP REPORT

ON

INSURANCE RELATED SERVICES

OF

NEPAL LIFE INSURANCE COMPANY

(Dhading Besi, Dhading)

Submitted By

Rupak Adhikari

BBA, Seventh Semester

Exam Roll No.: 18032528

PU Reg No.: 2017-2-03-1244

Submitted To

Ritz College of Engineering and Management

Faculty of Management

Pokhara University

In partial fulfillment of the requirements for the degree of

Bachelor of Business Administration (BBA)

Kathmandu, 19 May
 ACKNOWLEDGEMENT

It had been a great experience working in Nepal Life Insurance Company Limited,
Dhading and making a report under the internship experience on Nepal Life Insurance
Company Limited. I am extremely obliged to all the helping hands that directly or
indirectly helped me to complete my intern work. Firstly, I would like to thank Ritz
College of Engineering and Management for providing me an opportunity to use the
theoretical knowledge in the practical field in course of my internship program of 7 th
semester, under Pokhara University. I would like to thank Pokhara University for
designing the practical based Internship program giving the opportunity for the
students to explore the real-life situation of the life-insurance sector as well as to
insight the theoretical learning in the practical field. I am heartily thankful to the
manager of Nepal Life Insurance Company Limited, Dhading branch Mr. Bikash
Neupane, for providing me the opportunity to be an intern and gain the practical
knowledge of the life-insurance area. Finally, I would like to express my sincere
thank you to Mr. Madhu Sudhan Adhikari, Mrs. Sushmita Khanal and Mrs. Rejina
Shrestha entire team of Dhading branch for their kind suggestion and help throughout
the internship program.

Sincerely,

Rupak Adhikari

BBA Program (7th Semester)

1
 DECLARATION
I hereby declare that the internship report entitled “An Internship Report on
Insurance Related Services on ''Nepal Life Insurance Company”, submitted to
Faculty of management, Pokhara University is my original work done in the form of
partial fulfillment of the requirement of Bachelors in Business Administration (BBA)
under the supervision of Mr. Tulsi Ram Rijal.

-----------------------------

Rupak Adhikari

BBA 7th Semester (Marketing)

Ritz College of Engineering and Management

Exam Roll No.: 18032528

PU Reg No.: 2017-2-03-1244

TABLE OF CONTENTS

2
ACKNOWLEDGEMENT.............................................................................................1
DECLARATION...........................................................................................................2
LIST OF TABLE...........................................................................................................5
LIST OF ABBREVIATIONS........................................................................................6
CHAPTER ONE............................................................................................................7
INTRODUCTION..........................................................................................................7
1.1 Background of the Study......................................................................................7
1.2 Objectives of the Study........................................................................................8
1.3 Methodology.........................................................................................................8
1.3.1 Sources of Data..............................................................................................9
1.3.2 Organization Selection...................................................................................9
1.3.3 Placement.....................................................................................................10
1.3.4 Duration.......................................................................................................10
1.4 Activities Performed...........................................................................................11
1.4.1 Issuing Policy...............................................................................................11
1.4.2 Underwriting policy.....................................................................................12
1.4.3 Renewal Collection......................................................................................12
1.4.4 Phone Handling............................................................................................13
1.5 Limitations..........................................................................................................13
CHAPTER TWO.........................................................................................................14
INTRODUCTION TO INSURANCE INDUSTRY....................................................14
2.1 Insurance in Brief...............................................................................................14
2.2 History of insurance...........................................................................................14
2.3 Overview of Nepalese Insurance Industry..........................................................16
2.4 Types of Insurance..............................................................................................17
2.4.1 Life insurance...............................................................................................17
2.4.2 Non-life insurance (General life insurance).................................................18
2.4.3 Reinsurance..................................................................................................21
CHAPTER THREE......................................................................................................22
INTRODUCTION TO NEPAL LIFE INSURANCE COMPANY.............................22
3.1 Introduction to the organization.........................................................................22
3.2 Human Resource Development..........................................................................25
3.3 Products offered..................................................................................................25

3
 3.3.1 Naulo Surakshit Jeevan Beema Yojana.......................................................25
3.3.2 Jeevan Sahara...............................................................................................26
3.3.3 Jeevan Sarathi Beema Yojana......................................................................26
3.3.4 Naulo Keta-Keti Jeevan Beema...................................................................27
3.3.5 Naulo Jeevan Sambriddhi............................................................................28
3.3.6 Jeevan Laxmi...............................................................................................29
3.3.7 Rural Endowment Plan................................................................................29
3.3.8Bal Shiksha Beema Yojana...........................................................................30
3.3.9Jeevan Unnati Plan........................................................................................30
3.3.10 Naulo Dhanbarsha Plan..............................................................................31
3.5 Agent Details......................................................................................................31
CHAPTER FOUR........................................................................................................34
ANALYSIS OF THE ACTIVITIES DONE................................................................34
4.1Activities Performed............................................................................................34
4.1.1 Policy Execution..........................................................................................35
4.1.2 Underwriting policy.....................................................................................36
4.1.3 Renewal Premium Collection......................................................................37
4.1.4 Phone Handling............................................................................................38
4.2 Understanding of System and Process................................................................38
4.3 Problem identified..............................................................................................39
4.5 Observed gap......................................................................................................41
CHAPTER FIVE..........................................................................................................42
CONCLUSION, LESSION LEARNT AND RECOMMENDATIONS.....................42
5.1 Conclusion..........................................................................................................42
5.2 Lesson Learnt.....................................................................................................43
5.3 Recommendations..............................................................................................45
References....................................................................................................................46

4
 LIST OF TABLE
Table 1: Table showing the tenure of the internship period.........................................12
Table 2: Number of insurance companies in Nepal.....................................................19
Table 3.1 Financial institutions to pay renewal premium............................................25
Table 4 Composition of Board of Directors.................................................................26
Table 5 Bonus Rate of NLIC........................................................................................34

5
 LIST OF ABBREVIATIONS
BBA Bachelors of Business Administration
CEO Chief Executive Officer
CV Curriculum Vitae
FI Financial Institutions
Pvt Private
Ltd Limited
TU Tribhuvan University
MS Microsoft
SLC School Leaving Certificate
B.S Bikram Sambat
NLIC Nepal Life Insurance Company

6
 CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Bachelors of Business Administration (BBA) is a four year object oriented business

management program with an aim of producing self-motivated, highly disciplined and
confident middle-level skilled human resources in the field of management,
administration, finance and accounting required by various public and private sector
business enterprises and institutions. Therefore, in the quest of achieving its
objectives the students of BBA are given practical oriented assignments, out of which
internship is one of them that is done in the 8 th semester. An internship is a temporary
position with an emphasis on on-the-job training. It provides an opportunity for the
students to handle the real life situation of the workplace, to apply their conceptual
knowledge in the practical situation and to learn the art of conducting study and
presenting its findings in a scientifically and systematic manner. Internship is very
much valuable, result-oriented and carries weight equivalent to 6 credit hours in BBA
program of T.U.

This report is mainly focused with the internship activities and the overall overview of
the subject matter that are being carried out by the internee at Nepal Life Insurance
Company during the period of the 8 weeks from 2 nd Jun 2017 to 4thAug 2017on the
subject matter and activities related with insurance.

The study is aimed to provide the internee an opportunity to learn how to translate the
knowledge into wise actions through exposure to real organizational environment. It
has also helped me to assess myself in terms of demand of profession, and to gain
work experience and develop interpersonal skill. The program has stimulated creative
and critical thinking and helped in developing interpersonal communication skills.
The internship report allowed the internee to obtain insights into career opportunities
through interaction, observation and work experience in the organization. It became a
platform to develop basic research and decision-making skills and to undertake

7
independent analysis and appraisal of different situation. It has helped the internee to
become competent, confident and skilled professionals in near future such that
strengthening my managerial, entrepreneurial and leadership capabilities in today’s
organizations and help in broad understanding of professionalism, Integrity and
business responsiveness. Moreover, it is also provided an opportunity to assess fresh
graduates for some time before employing and of them.

1.2 Objectives of the Study

The main objectives of the study was to gain the real life experience of the workplace
and be prepared for handling the assigned responsibilities of the similar financial
institutions in the days to come through interaction ,observation and work experience.
The following are the specific objectives of the study:

 To analyze the working procedure of different departments of Nepal Life

Insurance Company

 To analyze the practical implication of the theoretical insights gained during

the BBA program and understand how theoretical knowledge differs from
practical life work environment

 To know the current -market situation of insurance in Nepal

 To enhance the communication skills, interpersonal skills and public relation

skills through direct interaction with customer

1.3 Methodology

The report has been prepared with the collection, compilation, analysis and
interpretation of the relevant data which have been collected through primary and
secondary sources. Primary data has been gathered through informal interview and
interaction. However, secondary data has been mainly used in this study. In order to
collect the required data, the internee visited various departments of the Insurance
Company. Detail updated records on aforementioned study variables have been
collected from the Company. Journals, magazines, books and booklets, bulletins,
newspapers and other publications were collected and manipulated according to the
need of the study. Website of Insurance Company also thoroughly visited to extract

8
necessary and relevant information during the study period . The informative portion
of this report is the outcome of information collected through direct interaction with
the working staffs whereas the analytical portion is the outcome of numerous
numerical data collected mainly from external secondary source.

The primary and secondary sources are mentioned below.

1.3.1 Sources of Data

The sources of the data of the report is divided into two categories: Primary sources of
data and Secondary sources of data

Primary Source of Data

 Observation of the working environment

 Face-to-face conversation with Department Head and technical staff of the

Nepal Life Insurance Company

 Direct Interaction with Walk-in Customer

 Involvement in the activities in the department within the limit of access

allowed to the intern as under the supervision of supervisor

Secondary Source of Data

 Information and data from the official website of Nepal Life Insurance Company and
from the intranet of the department

 Relevant books, Research papers, newspapers and journals

 Annual Report 2072/73 of Nepal Life Insurance Company

 Different websites

 Journal published by the Company itself

9
1.3.2 Organization Selection

It is necessary to choose the right organization for the internship because it helps in
career development in future. Organization is a place where we get knowledge about
the real world working environment in a practical way. Being the student of BBA
with area of specialization in Marketing, first preference for conducting internship
was for Marketing and Financial institution, and among several other marketing and
financial institutions, the internee decided to choose an insurance company for his
internship. The internship was completed in Nepal Life Insurance Company. It was
established to systematize, regularize, develop and regulate the insurance business
within the country under Insurance Act, 1992. Nepal Life Insurance Company does
research to bring new policies regarding life insurance. Recently Nepal Life Insurance
Company is being tie-up with different banks to issue policy of employees of these
financial institutions.

Therefore, the internee visited the Nepal Life Insurance Company and submitted
curriculum-vitae (C.V.), academic certificate and character certificate along with
college recommendation letter at Head Office of Nepal Life Insurance Company.
After a day they gave a letter confirming that the internee was selected for 60 working
days of internship at Corporate Marketing Office of the company.

1.3.3 Placement

In the first day of internship the internee were made familiar with various working
staffs along with their working areas and working procedure in brief. Nepal Life
Insurance Company has the system of providing access to the interns in various task.
So, the internee was allowed to issue policy, underwriting the policy, renewal
calculation and handling the phone to provide the information about company and its
products. The encouraging, motivating, helping, and correcting environment of
Company made the process of working and learning easier and quicker.

1.3.4 Duration

The duration of internship period defined by Tribhuvan University (TU) is eight

weeks for BBA Program However, Nepal Life Insurance Company is flexible and
allowed to do internship for 48 working days. The internee also did internship for 48

10
working days which helped the internee to gain greater access to Company and
provided the longer period to gain more working experience.

The following is a table showing the number of working days of internship for various
tasks.

Table 1: Table showing the tenure of the internship period

S. no Tasks Tenure (working Days)

1. Underwriting Policy 15 Days

2. Issuing Policy 15 Days

3 Phone Handling 5 Days

4 Renewal Collection 13 days

1.4 Activities Performed

During my internship period of 48 working days the internee was assigned to perform
different tasks. The following are the activities performed in each department.

1.4.1 Issuing Policy

Issuing policy is the act of purchasing insurance policy from insurance company by
the insured person. Insured person may be any person of the society who is eligible to
meet the rules and regulation of the company.

In Nepal Life Insurance Company internee are able to know about the products of
company to issue the policy. To what limit an insurance company can issue the policy
of insured person? What are the documents needed for insured person while issuing
the policy? And what are their procedures? After going through the directives and
policies provided to internee.

The major activities done by internee are:

11
  The internee checks the documents whether they are valid or not.

 The internee checks whether the needed information is provided or not.

 Scanning the policy documents and uploads it into the system of the company.

 Proper filing of the documents and keep them to the store systematically.

1.4.2 Underwriting policy

Underwriting is the act of recording the issuing policy in the system of company
according to the information in the policy. It is the most important task of the
company.

The major activities performed by internee are:

 Checking the necessary documents

 Entering the personal information like name, age, height, weight, occupation,
salary and so on in the system of the company

 Entering the medical record of the insured person if sum assured is more than
five lakhs

 If the insured person is child then the personal information of the proposer is
entered in the system

 Calculating premium which is based on various factors like term, age, sum
assured payment mode and so on.

1.4.3 Renewal Collection

Renewal is collected on the basis of yearly, half yearly, quarterly. There is the
provision of certain percentage of discount if premium is paid yearly and certain
amount should be added if premium is paid quarterly.

The internee performed the work of:

12
  The internee ask the policy number and see the due amount of premium in the
system

 The internee collects cash or cheque from the insured person

 After the collection of cash or cheque, renewal receipt is provided to insured

person

1.4.4 Phone Handling

The internee receives the call and provides the information related to their queries.
The internee makes call to inform insured person about their time to pay their
premium.Here the internee performs the following work:

 The internee receives call and deal with queries

 The internee makes call transfer to the related person

 make call to inform insured person about their time to pay their premium

1.5 Limitations

It was one of the greatest privileges to work as an internee in Nepal Life Insurance
Company, the top insurance company of Nepal. The knowledge acquired was one of
the best experiences of internee’s life. However, there were some limitations and are
quoted as follows:

 The duration of the internship was only 60 days. So, the study was only limited
to short period of time which was not sufficient enough to know every aspect
of the insurance work

 Interns were not allowed to participate in every aspects of the work in the
department

 Due to privacy policy maintained by the organization and the related parties, it
was difficult to know the take out the information

 This report is mainly based on my individual understanding and knowledge

gained during the internship period and theoretical knowledge that has been

13
 previously studied

 Mostly secondary data has been used for the purpose of the study that is based
on the annual report of Nepal Life Insurance Company

 The report is prepared for an academic purpose only

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 CHAPTER TWO

INTRODUCTION TO INSURANCE INDUSTRY

2.1 Insurance in Brief

Insurance is a promise of compensation for specific potential future losses in

exchange for a periodic payment. Insurance is designed to protect the financial well-
being of an individual, company or other entity in case of unexpected loss. Some
forms of insurance are required by law, while others are optional. Agreeing to the
terms of an insurance policy creates a contract between the insured person and the
insured person. In exchange for payments from the insured person (called premiums),
the insured person agrees to pay the policy holder a sum of money upon the
occurrence of a specific event. In most cases, the policy holder pays part of the loss
(called the deductible), and the insured person pays the rest. Examples include car
insurance, health insurance, disability insurance, life insurance, and business
insurance.

2.2 History of insurance

The word “Insurance” is as old as human civilization however the mode of insurance at
present is very advance than that practiced in ancient time . Early methods of
transferring or distributing risk were practiced by Chinese traders as early as the 3rd
millennia BC. These merchants traveling treacherous river rapids would cleverly
distribute their wares across many vessels to spread the loss due to any single vessel's
capsizing. In a loan contract of capital trading by the travelling merchants in Babylon
period, somewhere around 2000 B.C. the modern insurance business is thought to
have begun. The contract contained a clause that the risk of loss due to robbery in
transit was borne by the party providing the loan. In consideration for bearing this
risk, the lender calculated interest on the loan at an exceptionally high rate. Insurance
became far more sophisticated in post-Renaissance Europe, and specialized varieties
developed. On 3 December 1591, one hundred Hamburg house-owners concluded the
so-called “Hamburg fire contracts”, which are generally regarded as some of the first
examples of true mutual insurance contracts that we have today. Toward the end of
the seventeenth century, London's growing importance as a center for trade increased

15
demand for marine insurance. In the late 1680s, Mr. Edward Lloyd opened a coffee
house that became a popular haunt of ship owners, merchants, and ships’ captains,
and thereby a reliable source of the latest shipping news. It became the meeting place
for parties wishing to insured person cargoes and ships, and those willing to
underwrite such ventures. Today, Lloyd's of London remains the leading market (note
that it is not an insurance company!) for marine and other specialist types of
insurance, but it works rather differently than the more familiar kinds of insurance.

Insurance - as we know it today - can be traced to the Great Fire of London of 1666
that ravaged London from Sunday, 2 to Wednesday, 5 September. The fire would
have started in Pudding Lane in the king's appointed baker's shop (Thomas Farriner).
His maid failed to put out the ovens at the end of the night, and ignited the wooden
home of Farriner. The maid failed to escape the fire, and was one of its few victims.
Once it started, however, the fire spread quickly. The city was basically made out of
wood and during September since it was very dry, strong winds fanned the flames.
The fire gutted the medieval City of London inside the old Roman City Wall. It
consumed 13,200 houses, 87 parish churches, St. Paul’s Cathedral, and most of the
buildings of the City authorities. It is estimated that it destroyed the homes of 70,000
of the City’s 80,000 inhabitants. The death toll from the fire is unknown and has
traditionally been thought to have been small, as only a few verified deaths are
recorded. The Great Fire cost London an estimated £10million, at a time when its
annual income was just £12,000. Not surprisingly, this expense focused minds on the
idea of insuring against fire. By the end of the 17th century, three London societies
were actively engaged in the business – Nicholas Barbon's "Fire Office" (later known
as the "Phoenix Fire Office") was established in 1680, the "Friendly Society"
established in 1683, and the "Hand-in-Hand" Office. (The Hand-in-Hand was
originally formed in 1696 in Tom's Coffee House as the 'Amicable Contribution ship
for the Insurance of Houses against Fire', but the name was changed after the
company adopted an emblem of two hands joined beneath a crown. It still exists as
part of the CGNU insurance conglomerate.

Modern life insurance policies were established in the early 18th century. The first
company to offer life insurance was the Amicable Society for a Perpetual Assurance
Office, founded in London in 1706 by William Talbot and Sir Thomas Allen.

16
2.3 Overview of Nepalese Insurance Industry

Nepalese Insurance Industry formally came into existence about 70 years ago during
the time of Rana regime through the establishment of “Nepal Mal Chalani Tatha
Beema Company Limited” in Ashwin 8, 2004 BS. 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 was concentrated in non-life
insurance business. Before the establishment of that company there were some
branches of Indian Insurance companies operating to provide insurance service.

'Nepal Mal ChalaniTathaBima Company Limited', was not successful to provide all
types of insurance facilities all over the country. Foreign large insurance companies
were doing well business in Nepal through agents. Unite India Insurance,
Hindustan General Insurance, Starling Insurance, Ruby General Insurance and
Oriental Fire Insurance had branches in Nepal to provide insurance facilities until
2024 B.S.

Then RastriyaBeemaSansthan was established as private company on 16 th Dec, 1967

(Paush 1st, 2024) to start non-life insurance business. Considering the role of
insurance business in the expansion of economic activities and alarming outflow of
money from the country, the government of Nepal felt the need of large and well
organized insurance company within the country. Then immediately, the HMG
converted RastriyaBeemaSansthan into a government venture through Corporation
Wide Act 1968 on 15th Dec, 1968 (Paush 1st, 2025) to start both life insurance and
non-life insurance business.

After the democracy, the liberalization policy was adopted by Nepalese government.
So, Bema Ain (Insurance Act 1993) opened door to private sector investment in
insurance industry. Under this act, ‘Beema Samiti’ was established to regulate and
promote the insurance industry. At present there are 19 life insurance and 20 non life
insurance company under the regulation of Beema Samiti.

The Act has defined three types of insurance businesses:

17
  Life Insurance

 Non Life Insurance

 Reinsurance

The following table shows the number of insurance company in Nepal;

Table 2: Number of insurance companies in Nepal

Types Total no.

Life 19

Non life 20

Reinsurance 2

2.4 Types of Insurance

Generally, there are three insurance business; Life insurance, Non-life insurance and
reinsurance.

2.4.1 Life insurance

Life insurance is associated with human and living being. The coverage period for life
insurance is usually more than a year. So this requires periodic premium payment
either monthly, quarterly or annually.The insurance company provides a lump-sum
payment, known as a death benefit, to beneficiaries upon the insured person's
death .Typically, life insurance is chosen based on the needs and goals of the owner.
Term life insurance generally provides protection for a set period of time, while
permanent insurance, such as whole and universal life, provides lifetime coverage. It's
important to note that death benefits from all types of life insurance are generally
income tax-free.

18
Types of Life insurance

Basically there are four types of Life Insurance policies.

1. Whole Life Insurance

Whole life insurance features guaranteed premiums, death benefits, and cash value.
Whole life insurance policies also give the potential to receive dividends, which can
increase the value of the policy when the insured person is living or provide an
increased death benefit for beneficiaries.

2. Term Life Insurance

Term life insurance is often the most affordable coverage because it offers protection
for a specific number of years. It may be 10, 15 or of any period of years.

3. Endowment life insurance

It is the most common type of life insurance policy in Nepal and India .This policy
pays the policy amount if the insured person dies, but it also pays the policy amount if
the policyholder survives until the term of policy. This policy does have relatively
larger premium to be paid to your nominee if you die before five years.

4. Universal life policy

It is a recent innovation in life insurance market. Like traditional whole life policies,
this policy provides premature death protection and saving accumulation. However,
under this policy there is greater flexibility with respect to payments of insurance
premium. The cash value of benefits to be paid to insured person also varies over the
time according to premium payments, expense and mortality charges.

2.4.2 Non-life insurance (General life insurance)

General insurance is basically an insurance policy that protects you against losses and
damages other than those covered by life insurance. For more comprehensive
coverage, it is vital for us to know about the risks covered to ensure that our family is
protected from unforeseen losses.

19
The coverage period for most general insurance policies and plans is usually one year,
whereby premiums are normally paid on one-time basis. It insured persons
everything in your life except your life. Non-life insurance is a broad category,
including on both people and things. Insurance companies and company-owned
agencies typically specialize in one or the other, though individual brokers and
brokerages have the option of dealing in multiple types of coverage. For example, a
large brokerage might contain people specializing in life and disability, group and
health plans, auto and homeowner's insurance, or liability coverage for professionals.
Smaller brokerages are more likely to specialize in one or two lines of business. If
your own broker doesn't sell everything you need, you can probably score a referral to
another broker who's got what you want.

1. Fire Insurance

Insurance that is used to cover damage to a property caused by fire. Fire insurance is a
specialized form of insurance beyond property insurance, and is designed to cover the
cost of replacement, reconstruction or repair beyond what is covered by property
insurance policy. Policies cover damage to the building itself, and may also cover
damage to nearby structures, personal property and expenses associated with not
being able to live in or use the property if it is damaged.

2. Aviation Insurance

This insurance operates to cover for the risks of possible losses that may be suffered
by aircrafts such as aero planes, helicopters, etc. and it also embraces the risk of losses
that may be caused by these aircrafts.

3. Engineering Insurance

This insurance covers against misfortunes such as machinery breakdown, business

interruption, deterioration of stock, engineering transit, dismantling and erection and
accidental damage to electronic equipment, mobile plant and construction work.
Under this insurance, the following schemes are included:

 Contractor Overall Risk Insurance

 Machinery Overall Risk Insurance

20
 Boiler Insurance

4. Medical Aid Insurance

In this insurance, the expenses resulting from the medical treatment of the personnel
employed in any institutions or offices and their families are covered for. Illness
during travel is also embraced under this insurance policy.

5. Professional Indemnity Insurance Policy for Doctors & Medical

Practitioner

The objective of this insurance is to secure the doctor in compensation for the death or
other losses of the patient when the doctor errs while providing medical services. And
other objective of this insurance is to secure the health service provider agencies in
compensation in case the patient dies, suffers from loss of limbs or organs or other
damages as a result of mistake in services or accident on the part of hospitals, nursing
homes, polyclinics or any health service provider agencies while providing medical
services.

6. Motor Insurance

Motor insurance is insurance purchased for cars, trucks, motorcycles, and other road
vehicles. Its primary use is to provide financial protection against physical damage
and/or bodily injury resulting from traffic collisions and against liability that could
also arise there from.

7. Miscellaneous Insurance

Risks covered other than above mentioned are included in the miscellaneous insuranc

e. This insurance includes:

 Personal Accident Insurance

 Cash In Transit Insurance

 Burglary & House Breaking Insurance

 Workmen Compensation Insurance

21
  Fidelity Guarantee Insurance

 Bankers Blanket Insurance

 Public Liability Insurance

 Household Insurance

2.4.3 Reinsurance

Reinsurance is insurance that is purchased by an insurance company (the "ceding

company" under the arrangement) from one or more insurance companies (the
"reinsured person") directly or through a broker as a means of risk management, tax
mitigation and other several reasons. It is the practice of insured person transferring
portions of risk portfolios to other parties by some form of agreement to reduce the
likelihood of having to pay a large obligation resulting from an insurance claim.

By covering the insured person against accumulated individual commitments,

reinsurance gives the insured person more security for its equity and solvency and
more stable results when unusual and major events occur. Insured person may
underwrite policies covering a larger quantity or volume of risks without excessively
raising administrative costs to cover their solvency margins. In addition, reinsurance
makes substantial liquid assets available for insured person in case of exceptional
losses.

22
 CHAPTER THREE

INTRODUCTION TO NEPAL LIFE INSURANCE COMPANY

3.1 Introduction to the organization

Nepal Life Insurance Company is established under the Company Act 2053 and
Insurance Act 2049 as a public limited company on Baishakh 21, 2058 BS. It 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 sixteen years 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. 500 Crore and Paid-up Capital of
Rs.309.64 Crore. As on Asad 2074, the company has insured person 8,27,366 under
conventional policies worth Rs.19,527 Crore and 14,24,026 Foreign Expatriate
policies worth Rs.82,483 Crore. Out of the total premium collected the company has
invested Rs. 4,750 Crore as per guidelines of Bima Samiti. The company has insured
person itself with well-know reinsurance company "Hannover Re Life Reinsurance
Company", Germany.

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 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 to enhance their knowledge and skill, so that the
company can reach in depth of the market.

Vision and Mission

Vision

23
 “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 building a healthy, prosperous, strong & Vibrant Nation.”

Mission

“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 company has been a symbolic organization in the life insurance industry, special
efforts are being made to spot, recruit and train new agents not only in the academic
part of insurance but also in marketing and servicing of insurance. For this purpose,
the training sessions are being held at door steps of agents i.e. the 'Branch' and 'Sub
Branch' 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 assurance that the company is on sound and solid ground.

The company is focusing on providing qualitative services of International Standard

which cannot be fulfilled without the help of information technology. The company
has strong IT infrastructure. All Branches of Nepal Life has been connected through
wide area networking to provide better customers service.

Policy holders can pay renewal premium from following financial institutions too.

Institution Branch

NIC Asia Bank Limited All Branch

Siddartha Bank Limited All Branch

Deva Bikash Bank All Branch

24
Prabhu Remit Prabhu Management (All Branch)

Table 1.1: Financial institutions to pay renewal premium

3.2 Composition of Board of Directors

Nepal Life Insurance Company is managed by a team of professional Board of

Directors. The member of the Board of Directors have proven track record in the
insurance sector.

The Board of directors consists of the following personalities

Table 2 Composition of Board of Directors

Name Position

Mr. Govind Lal Sanghai Chairman

Mr. Ram Awatar Agarwal Director

Mr. Kamlesh Kumar Agrawal Independent Director

Mr. Vivek Agrawal Director

Mr. Krishna Raj Lamichhane Director

Mr. Bimal Prasad Dhakal Director

Mrs. Parul Dhakal Director

25
 3.2 Human Resource Development

Nepal Life has sufficient number of skilled manpower. In order to strengthen the
marketing force it has made special efforts to impart theoretical and practical training
to staff and agents, by in house faculty and outside institutions.

Agents - It provides regular training to our agents in a view to develop

professionalism in them. It also hold motivational and educational meeting of star
performer agents.

Staff - Newly recruited staff members are given theoritical and practical training
about insurance principles and practices. At the same time, majority of them are
rotated from seat to seat, so as to give them practical exposure to various activities of
the company.

Consumer Meet - Consumer meet of policy holders are being organized at different
centre to make them aware of latest trends in insurance , various products the
company has launched and services provided

3.3 Products offered

Nepal Life Insurance Company offers various products to its customers having
distinct features. Generally, products are classified as endowment, anticipated, whole
life and term insurance policy. Under it, there are 11 different products offered by
Nepal Life Insurance Company.

3.3.1 Naulo Surakshit Jeevan Beema Yojana

It is an endowment plan. It can be taken by anyone in the age group between the age
of 11 years to 60 years. The maximum age on maturity is 65 years. Under this plan
the insured person amount (Sum Assured) 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.

Features of Naulo Surakshit Jeevan Beema Yojana:

1. It can be taken by anyone in the age group between the age of 11 years to 60 years.

26
2. Maximum age on maturity is 65 years.

3. Under this plan loan upto 90% of the surrender value after the policy has completed
two years term.

4. Minimum Sum Assured is Rs.25,000/- and Maximum Sum Assured depends upon
the income source of life to be assured.

5. Premium can be paid Yearly, Half-Yearly and Quarterly basis.

3.3.2 Jeevan Sahara

The plan is specially designed Endowment product to cover the wide range of risk for
our social communities of Nepal. The insured person amount (sum assured) together
with bonus is payable on maturity date and full insured person amount (sum assured)
again payable on death of life assured after maturity.

Features

1. In case of death before maturity date under inforce policy, the insured person
amount (sum assured) and whatever bonus declared is payable.

2. insured person amount (sum assured) is payable in case of death of the policy
holder after maturity of policy term.

3. Minimum insured person amount (sum assured) is Rs. 100,000 and no limit for
maximum insured person amount (sum assured) depending upon the income source
of the proposer.

4. Minimum entry age is 16 yrs and maximum entry age is 65 yrs.

5. Minimum term is 5 yrs and maximum term is 54 yrs or maximum age of 70 yrs
which ever is earlier.

6. The mode of payment is either yearly, half yearly or quarterly.

27
 3.3.3 Jeevan Sarathi Beema Yojana

NepalLife has introduced a new kind of policy in Nepali market. It is a joint life
policy. Under this plan risk of both husband and wife is covered by a single policy.
Upon the death of spouse, insured person amount is paid to alive husband or wife and
remaining premium (installment) which has to be paid by the alive patner to the
company will be waived. Again the insured person amount along with bonus is paid
on maturity.

Features of Jeevan Sarathi Beema Yojana:

1. It can be taken by anyone in the age group between the age of 18 years to 50 years.

2. Maximum age on maturity is 65 years.

3. Under this plan loan upto 90% of the surrender value after the policy has completed
two years term.

4. Minimum Sum Assured is RS. 50,000/- and Maximum Sum Assured depends upon
the income sources of lives to be assured.

5. Minimum Premium paying term is 15 years and maximum premium paying term is
30 years

6. Premium can be paid Yearly, Half-Yearly and Quarterly basis.

3.3.4 Naulo Keta-Keti Jeevan Beema

Every parent spun dreams for better education marriage and successful life for their
offspring. 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.

Features

1. Policy can be issued on the life of just-born child till age of eleven, proposed by
either of the parent.

28
2. 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.

3. In case of child who has completed his age 8 or 9 the risk shall commence from age
10.

4. Minimum Sum Assured RS. 100,000 and maximum R.S. 50,00,000.

5. The term of this policy is 19 minus age of child at commencement of policy.

6. Maturity age 19 year of child(fixed)

7. The policy vests in the child at 18 years of age.

8. Policy premium frequency: Either yearly, Half Yearly or quarterly with certain
conditions.

9. Premium waiver Benefit available on the life of proposer (either of parent only)
with extra payment.

10. Surrender as per condition but no loan available.

11. No accident benefit available on the life of child.

12. Policy participates in profits.

3.3.5 Naulo Jeevan Sambriddhi

Naulo Jeevan Sambridi is Limited Payment Money-back (Anticipated) Endowment

Plan. Company has launched this product after successful launching of previous
anticipated endowment plan (Jeevan Sambdirhi) keeping in mind the customer
demands requiring more money-back during the policy terms.

Features

1. Single premium payment option,

2. Policy loan availability after one year after paying 2 yearly premium,

3. It can be taken by anyone in the age group between the age of 16 years to 60
years.

29
 4. Maximum age on maturity is 70 years.

5. Term range is 10,15,20 and 25 years

6. Combined Accidental Death Benefit (ADB), Permanent Total Disability
(PTD) and Premium Waiver Benefit (PWB) riders are available under this
plan.

3.3.6 Jeevan Laxmi

The plan is the Triple Benefit Endowment Plan with Bonus payable on the following
terms:

1. Basic Sum Assured with bonus payable on maturity

2. Two times of Basic Sum Assured with proportionate final bonus payable on normal
death under inforce policy within policy term.

3. Three times of Basic Sum Assured with proportionate bonus payable in case of
accidental death under inforce policy within policy term.

4. Minimum Sum Assured is Rs. 50,000 and maximum Rs. 100,000

5. Minimum entry age is 16 yrs and maxmimum entry age is 50 yrs

6. Minimum term is 7 yrs and maxium term is 25 yrs or maximum age of 60 yrs
whichever is earlier.

7. The mode of payment is either yearly or half yearly.

3.3.7 Rural Endowment Plan

Rural Endowment Plan is specially designed to address social security needs of rural
areas. It is a regular premium endowment with profit plan with built in accident
benefit. Unlike a typical social commercial life insurance policy, it offers assistance to
families with lower income and lesser savings.

Features

1. Simplified policy issue procedure

30
2. Inbuilt Accidental death benefit without extra cost

3. Grace period of 60 days to cater rural needs

4. Good Investment Plan with Death Risk Coverage

5. Simplified and Hassle-free claim procedure

3.3.8Bal Shiksha Beema Yojana

Bal Shiksha Beema Yojana is a policy for child upto 18 years where, proposer's sum
assured and respective bonus shall be paid to the proposer in case of maturity of the
plan and if the proposer is alive.

Features

1. Entry Age - From birth till 18 yrs

2. One policy, double risk coverage (Proposer & Child)

3. Maturity amount received can be utilized for child's education

4. In case of death of the proposer, regular fixed income will be provided to the
child to ensure the child's education till maturity

5. Loan facility available after 1 year of policy enforcement

3.3.9Jeevan Unnati Plan

Nepal Life Insurance presents Limited payment Money back plan, a savings and
protection plan that provides lump sum payouts at regular intervals to meet our
interim financial requirements and provide the best for our family, while maintaining
full risk cover for the entire period.

Features

1. Money Back at Regular Interval

2. Age at Entry : 16 years to 58 years

3. Maximum Maturity Age : 70 years

31
 4. Minimum Sum Assured : Rs.50,000

5. Premium Payment mode: Single, Yearly, Half-Yearly, Quarterly and

Monthly

3.3.10 Naulo Dhanbarsha Plan

Naulo Dhanbarsha is Limited Payment Money-back (Anticipated) Endowment Plan.

Company has launched this product after successful launching of previous anticipated
endowment plan keeping in mind the customer demands requiring more money-back
during the policy terms. During the policy terms there shall be 5 payments thus
creating more liquidity option during the policy periods as well as policy loan is
available after one year after paying 2 yearly premiums. The risk of death of insured
person is covered through the period and whereas premium payment are made for
limited terms only.

Features

1. Premium can be paid either monthly, quarterly, half-yearly or yearly mode. If

customer wishes to pay all premiums at once, he can choose single premium
mode too.

2. Combined Accidental Death Benefit (ADB), Permanent Total Disability

(PTD) and Premium Waiver Benefit (PWB) riders are available under this
plan.

3. Entry Age: 16 Yrs to 60 Yrs

4. Maximum Age at Exit: 70 Yrs

Table 3: Bonus Rate of NLIC

Duration ENDOWMENT MONEY BACK

32
 Term Bonus Rate Term Bonus Rate

5 -14 37 15 39

As on July 2003 15 – 19 43 20 44

20 - 24 49

Above 25 65

July 2003 to July 2006 ALL 50 ALL 50

5 - 20 56 15 56

July 2006 to July 2009 21 - 25 60 20 58

Above 25 71

5 - 15 60 15 60

16 - 20 62 20 62

July 2009 to July 2011

21 - 25 70

Above 25 80

33
 5 - 15 62 15 62

16 - 20 64 20 64

July 2011 to July 2012

21 - 25 72

Above 25 82

5 - 20 65 15 65

July 2013 onwards 21 - 25 72 20 65

Above 25 82

3.5 Agent Details

No of Active Agents

As on Jestha 2074 53,370

Corporate Agents

Name Address Email

Nepal Bank Limited Dharmapath, Kathmandu [email protected]

34
 NIC Asia Bank Limited Tripureswore, Kathmandu [email protected]

Muktinath Bikash Bank

Prithivi Chowk,Pokhara [email protected]
Limited

NMB Bank Limited Babarmahal,Kathmandu [email protected]

Siddharta Bank Limited Hattisar,Kathmandu [email protected]

Everest Bank Limited Gwarko Branch, Lalitpur [email protected]

Agent is a person who acts on behalf of another person or group. In insurance company,
agent sells the policy of the company to the clients. Different training programs are
conducted in various places of Nepal to give them knowledge regarding the details of the
product and develop their skill. It makes positive contribution to the service culture of the
insurance system. The detail of agents of Nepal Life Insurance Company is shown in the
above table

CHAPTER FOUR

ANALYSIS OF THE ACTIVITIES DONE

AND PROBLEMS SOLVED

35
As an internee, it was indeed a great opportunity to know about the insurance
activities in depth. Internee observed the real operations of the Nepal Life Insurance
(NLIC) as internee has only the theoretical knowledge. During his internship, he has
performed activities like underwriting policy, issuing policy, renewal collection and
so on. To generate the profit, Insurance Company needs customers and receives the
premium through different names of insurance policy. At NLIC, internee had an
opportunity to study and observe the real working environment of the company.
Internee had the advantage of working in the very friendly atmosphere in corporate
marketing office of NLIC.

The internee was oriented about the following topics in the first day of internship:

 What actually is Life Insurance Company?

 Different departments of the company

 Need of Life Insurance Company

 Functions and duties of Nepal Life Insurance Company

The internee were provided with Insurance Act, 2049(updated in 2058/10/10),

Insurance Regulations, 2049 (updated in 2060/01/18) and a guideline book of NLIC
which helped the internee to get insight into overall design of the organization,
working procedure of different departments, the dos’ and don’ts’ for insurance
companies. The material provided also helped the internee to become familiar with
insurance terminologies and the products offered by NLIC. It also helped to know
about different types of forms used to issue policy and the procedure for calculating
the premium which helped the learning and working process of internee easier and
faster.

4.1Activities Performed

During my internship period of 60 working days the internee was assigned to perform
different tasks. The following are the activities performed in each department.

36
4.1.1 Policy Execution

Policy Execution is the act of purchasing insurance policy from insurance company
by the insured person. Insured person may be any person of the society who is eligible
to meet the rules and regulation of the company.

In Nepal Life Insurance Company internee are able to know about the products of
company to issue the policy. To what limit an insurance company can issue the policy
of insured personr? What are the documents needed for insured person while issuing
the policy? And what are their procedures? After going through the directives and
policies provided to internee.

Following steps shall be followed to get the policy approved and issue

Step1: Filling Forms

There are standard forms which have to be fulfilled by the prospective insurance
client.

Form no.1: This form id filled up to provide basic details of the prospective insured
person. This part of form requires information from Citizenship Certificate. Further
this form requires the information on the intended policy, especially plan name, sum
assured term, payment mode, intended nominee, relationship with nominee and
declaration of any existing policy with Nepal Life

Form no.2: This form inquires on the personal and family health. The form acts as self
declaration with regard to hereditary characters / disease (if any), habits that impacts
health, any chronic diseases that the prospective insured persond had/has been
suffering from.

Form no.3: This form shall be filled up by the certified medical practitioner (doctor).
The information in the form requires medical examination reports as well.

Form no.4: This form inquires the terms and condition under which the agent/bank
collected the proposal of prospective insured person. This is the self declaration form
to be filled up by the agent/bank representative. This form is a must for every
proposal submitted to Nepal Life.

Requirements:

 The original medical reports shall also be submitted along with the forms.

37
  Income proof (Eg: income certificate/Employment contract/Financial
statement)

 Age and Identity proof( Eg: Birth Certificate for child/ Citizenship
Certificate/passport)

 Photo 1 (PP Size)

Step 2: Document submission mode

The filled up forms along with medical reports (if any) and other documents shall be
scanned and send via email to Nepal Life Insurance. The branches outside Kathmandu
Valley shall contact the branch incharge of Nepal Life. The original document shall
be send on weekly basis to the concerned offices of Nepal Life.

Step 3: Proposal Approval and Payment request

Based on the form sent Nepal Life approves the policy and sends premium request via
email.

Step 4: Mode of Payment

The bank shall deposit the premium in the account of Nepal Life maintained
Corporate Branch of the Bank holding account number (.................) and send the
credit advice via same email.

Step 5: Policy Delivery

Nepal Life issues the policy along with the premium receipt and sends the scan copy
to the concerned branches of the bank. Further the original policy is handed over
within 2 days of policy approval via agreed delivery mode.

4.1.2 Underwriting policy

Underwriting is the act of recording information of the issuing policy in the system of
company as per the data available in the form that is filled to issue policy. It is the
most important task of the company.

The major activities performed by internee are:

 Checking the necessary documents

 Entering the personal information like name, age, height, weight, occupation,
salary and so on in the system of the company

38
  Entering the medical record of the insured person if sum assured is more than
five lakhs

 If the insured person is child then the personal information of the proposer is
entered in the system

 Calculating premium which is based on various factors like term, age, sum
assured payment mode and so on.

After entering all the information of the form in the system, premium is
calculated and two copies of underwriting sheet are printed. One copy is given
to the insured person and other copy is kept in office for future reference.

4.1.3 Renewal Premium Collection

Renewal premiums are the subsequent premiums that are paid by the insured person
to the insurer in order to keep the policy in operation and avail the benefits of the
policy accordingly. If a policy holder fails to pay the premiums, then his policy lapses
after a certain period.

In NLIC, the insured person can pay premium on yearly, half yearly and quarterly
basis. There is the provision of certain percentage of discount if premium is paid
yearly and certain amount should be added if premium is paid quarterly. If the
renewal premium is not paid on time, the insured person has to pay certain amount as
fine.

The internee performed the work of:

 The internee calls the insured person to inform about the time to pay premium

 The internee ask the policy number and see the due amount of premium in the
system

 If the policy number is not available, the internee ask mobile number and
search the policy details in the system

 The internee collects cash or cheque from the insured person

 After the collection of cash or cheque, internee provides renewal receipt to

insured person and provides change if required

 The record of premium collection is kept in the computer system

39
  At the end of the day, all the collected cash and cheque are managed by
internee and send to bank for deposit

4.1.4 Phone Handling

Phone handling is the management of incoming and outgoing telephone calls. The
internee receives the call and provides the information related to their queries.
Similarly, the internee makes call to inform insured person about their time to pay
premium or other information of the company.

Here the internee performs the following work:

 The internee receives call and deal with queries

 The internee makes call transfer to the related person

 The internee makes call to inform insured person about their time to pay their
premium

 The internee makes call to different branches of NLIC to inform about the bank
assurance

 The internee makes call to the manager of different branches and provide
information about the new activities to be carried out by them

Beside these, some other activities carried out by internee are:

 Filing the policies that are to be given to the client or insured person
 Scanning the final policies and uploading it in the computer system
 Searching policy number of the missing files
 Managing the files by writing name and policy number on the file in huge
letter
 Correcting the mistakes that are appeared in the printed document

4.2 Understanding of System and Process

A system is a set of principles or procedures according to which something is done.

Most of the activities of NLIC were performed through computer system. The
internee was given access to the system of NLIC which helped them to do the work
faster.

 Firstly, the employee logged in their id into the computer where internee do
their work

40
  Brief introduction of the overall working mechanism of the system was given
to the internee
 The process of underwriting the policy were taught to the internee
 The guidelines for searching policy number, policy details, amount of
premium and so on were given to them
 After providing all the information about the system, the internee were given
work to do on their own

The work done by internee would be thoroughly checked and further process
would be done. Working on the computer system of NLIC helped the internee to
know in depth about the working mechanism of the company. Besides working in
the computer system, further works were also given to the internee. The complete
processes of issuing policy (from underwriting policy to distributing the policy to
clients) were understood by the internee.

4.3 Problem identified

During the tenure of internship period the internee were given different task. All
sections are associated with some problems which has delayed the working process of
respective sections. NLIC is constantly trying to phase out the identified problems but
the process is quite time consuming. The followings are major problems identified in
NLIC.

i. Unorganized office structure

The office is shifted from Kalimati to Kathmandu Business Park, Teku. Till date the
placement of office is not made correctly. The customers are unknown about the
shifting of the company which made them difficult to find the office and get their
service.

ii. Software problems

The company is still using traditional software which couldn’t work as per the
requirement. It cannot handle high pressure of data and information.

iii. Constant power cutoff

41
There is constant power cutoff that obstruct the daily office work. There is no power
backup in computer that is keeping the files unprotected. The electronic work is
unsaved and must be done repeatedly.

iv. Inadequate office supplies

The office supplies and materials are deficient. Due to lack of supplies the work is not
completed on time. There is delay in order of supplies and materials as all the
materials are brought from head office, kamaladi.

v. Lack of office machine

The office machine like photocopy machines, scanner and faxes are not adequate for
number of staff. There is only one photocopy machine and two scanners which are
used by all staff. This makes delay in work completion.

vi. Messes of files

The files and documents aren’t kept separately and are all messed up in a single
cupboard. It makes difficult to find the files when needed.

Some other problems that were identified are:

 There are less number of employees which lead to delay in work

 The premium is collected only up to 2:30 pm, so people had to return back
home without paying premium
 All the necessary information are not disseminated properly to the insured
person so they come in company with different queries
 The office space is not utilized properly as there is huge unused space
 Office equipments are not kept properly and it is not found when needed

4.4Problem solved

i. Renewing and issuing of policy

The internee helped the in renewing and issuing the policy which helped the staff to
be involved in other works. The internee make document ready for processing which
helped to execute the task faster.

ii. Preparing details of insured person

The internee performed the work of listing the name of insured person,
made details of date of premium payment and finally figured out the total

42
 amount of premium paid by each insured person to the company in MS-
WORD

and MS-EXCEL.

iii. Managing files

The files were messed up. The internee managed all the files properly so
that it could be found easily when needed. The name of insured person and
their policy number were written on the file in huge letter so that it could
be found easily.

Beside this, some other problems solved by internee are:

 Internee scanned the documents and upload in the system when the scanner
was not used by the employees, which made the work faster.

 The internee matched the policy number and other details printed in the paper
with the detail that was available in the system.

 The internee corrected the name and policy number if mistake was found on
the printed paper.

 The internee find out the policy number of missing files from the system and
keep it systematically.

4.5 Observed gap

In the conceptuality, learning theoretically through the books and experiencing those
learned materials in the real world has vast differences or the gap. Applying
theoretical knowledge directly in real work situations misleads our results; however,
importance of theoretical knowledge cannot be discarded. Literature is the base to
perform any task in working environment. However, there is some gap between
theory and practice. Socio-cultural factors, interpersonal relationship seems to be
simple in theory but in the practice maintaining interpersonal relationship and mixing
with society is crucial and difficult task. One cannot simply be perfect to work just by
reading theories in book. Working in real work situations needs more practice than
bookish knowledge. Organizations nowadays are becoming more flexible in the

43
process of adapting the changes in the environment and lot of changes have been
accustomed by the organization for their convenience and survival.

CHAPTER FIVE

CONCLUSION, LESSION LEARNT AND RECOMMENDATIONS

5.1 Conclusion

The insurance business has earned popularity in Nepal because of its development
where as people are becoming more aware of insurance policy. Insurance policies
give various type of protection in trade and commerce as well as public property.
Insurance covers many risks and uncertainties in the world of business and act as
boon to the industrial or commercial concerns and general public. Businessman can
easily and confidently transfer the risk of loss of insurance. It also safeguards the

44
interest of individual and public. In life insurance, the insurance policy covers for
financial protection against risks over individual life and health. On the other hand the
non-life / general insurance policy covers for financial protection of individual
property and liability from unsuspected risks. Despite Nepal's vast population, rural
poverty and lack of awareness about insurance products have constrained the growth
of insurance business in past. This is expected to change with the recent deregulation
and liberalization of insurance.

There is no doubt that operation of Nepalese insurance industry needs to be more

professional, transparent, competitive, innovative and efficient in order to provide
effective services to the public in general and policyholders in particular. It is the
primary concern of the Insurance Board. Insurance Board must go together with the
criteria fixed by IAIS Insurance Core Principles (ICP). It has carried out the self-
assessment of Insurance Core Principles, taking into account the domestic context,
industry, structure and stage of development of the financial system and overall
macroeconomic conditions. Insurance supervision of Nepal is undergoing mainly on
traditional way without considering some of the most essential framework in place.
Ultimately it may hamper the policyholders' interest and the market. For this purpose,
development of professional human resources, investment in research and
development, specialized training and development, making policy relating to
licensing broker for reinsurance are the major concern of Insurance Board.

5.2 Lesson Learnt

The eight weeks internship period in Nepal Life Insurance has taught me many
lessons. Internee have learnt different skill and obtained a variety of knowledge
during his internship period. Internee was able to use himself with the world of
business where internee could apply his theoretical knowledge in practical field of
real life situation. Internee learned to familiarize with the realistic environment and to
provide the required strength to face the problem that comes in the way.

Knowledge

Internee gained the overall knowledge on underwriting policy, issuing policy and
renewal collection of Nepal Life Insurance Company. Internee got to know the

45
insurance board’s works to some extent and got the knowledge on punctuality and
regularity through the staff of Nepal Life Insurance Company.

 Learned the procedure of running the Insurance Company.

 Learned to issue policy.

 Learned to calculate premium and collection of renewal.

 Learned to prepare underwriting sheet of insurance company.

 Learned to use the office equipment like photocopy, faxes, printer scanner etc.

Skills

Internee got to learn different kinds of personal and non-personal skill and interact
with the customer and with the member of the organization as a whole in person.

 Learned to make effective communication skill for quick and efficient service.

 Learned to tackle the various problems of the customer which developed problem
solving skills

Attitude

Internship on NLIC provided internee the practical exposure and helped to understand
corporate social responsibility, develop corporate attitude and venture
entrepreneurship.

 Developed attitude to socialize with coworkers and do task effectively

 Learned about general insurance practices and culture.

 Developed positive attitude towards the importance of insurance.

 Developed capability to influence people about the products of insurance

company

Thus, Internee wants to conclude that throughout the internship period internee leant
and develop to use theoretical knowledge in the practical business world. Hence,

46
internship in Nepal Life Insurance Company not only gives an insight to learn about
how the insurance board control and regulate insurance company in Nepal, but also
boosts him future prospects in the insurance sector as well.

5.3 Recommendations

From the presiding discussion of the report, internee can realize that the policy maker
of insurance company should adopt effective measures in order to make good use of
the opportunities and to tackle the threats for ensuring a health development of the
insurance industry. The following actions are suggested:

 Insurance company should practice marketing through the use of promotional

tools such as advertising, sales promotion, public relation and direct
marketing.

 Insurance company should introduce more innovative and modern customer

services.

 Claims settlement should complete at quickest possible time.

 Insurance board should increase modern technology at every sector.

 Insurance board should introduce effective and efficient insurance directive

and policy.

 Insurance Board should hire adequate employee so that they can easily
perform office works.

 Insurance company should increase branch at rural areas of every district

level.

 Government should minimize restriction on law and policy of insurance

activities.

47
 References
Books

M. N. Mishra (Insurance Principles and Practice)

Bank assurance training hand book of Nepal Life Insurance

Annual reports and newsletter of Nepal Life Insurance

Madura, J. (2010-2021) Financial Markets and Institutions.

Insurance Act 1993

The Insurance Act 2010

Internet sources

www.nepallife.com.np

www.businessdictionary.com

economictimes.indiatimes.com

THANK-YOU

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