RBCL Services

Services of Rastriya Beema Company Limited

In Nepal’s financial sector, the role of insurance is not limited only to risk reduction; it is also a backbone of national capital formation and economic stability. In this context, Rastriya Beema Company Limited (in Nepali: राष्ट्रिय बिमा कम्पनी लिमिटेड) is a respected name in Nepal’s insurance history.

It is the only non-life insurance (Non-Life Insurance) company fully owned by the Government of Nepal, and it has been providing financial security to the Nepali public and key state institutions for more than five and a half decades.

Historical Evolution and Establishment

The foundation of Rastriya Beema Company Limited was laid in 1967 (2024 BS) as “Rastriya Beema Sansthan” (Rastriya Beema Sansthan - RBS). Established on Poush 1, 2024 BS with investment participation from the private sector as well, the institution formally began non-life insurance business from Falgun 11, 2024 BS.

However, with changes over time and legal requirements, the need for specialization in the insurance sector (Specialization) became evident. After the provision in Section 12 of the Insurance Act, 2049, that a single institution cannot operate both life insurance (Life Insurance) and non-life insurance (Non-Life Insurance), the process moved forward to establish the non-life insurance department of Rastriya Beema Sansthan as a separate company.

Accordingly, on Jestha 28, 2071 (June 11, 2014), “Rastriya Beema Company Limited” was registered at the Office of the Company Registrar. On Ashar 27, 2071, it received a license from the then Insurance Board (now the Nepal Insurance Authority), and from Shrawan 18, 2071, it has been independently operating its non-life insurance business.

At present, the company has completed 11 years of its business journey and has entered its 12th year.

Vision and Objectives

The main objective of establishing Rastriya Beema Company is to mobilize national resources and reduce the burden of foreign currency outflow. Its key objectives are as follows:

• Internal resource mobilization: Support capital formation necessary for the country’s development.

• Risk management: Reduce risks to assets in the public and private sectors through insurance.

• Implementation of government policy: Extend insurance access to the Government of Nepal’s priority areas (such as agriculture, livestock, and cyber security).

• Service quality: Earn customer trust by delivering high-standard services in a competitive market.

Core Insurance Services

The service delivery design of Rastriya Beema Company Limited (RBCL) is not focused only on commercial benefit; it functions as a broader framework for national risk management.

The services provided by the company are analyzed below in detail based on technical perspectives, legal provisions, and market demand.

1. Property Insurance: Protective cover for national physical infrastructure

Under property insurance, RBCL provides broad protection in line with the Government of Nepal’s policy and the Nepal Insurance Authority’s “Property Insurance Directive.” It expands the traditional scope of fire insurance (Fire Insurance) by including “allied perils” (Allied Perils).

Technical aspects: This insurance covers natural disasters such as fire, lightning, earthquake, flood, inundation, landslide, storm, and hail. In addition, losses from riot, strike, malicious damage, and terrorism (RSDMD & T) are also included through an additional premium.

Government asset management: RBCL has been insuring ministries within Singha Durbar, constitutional bodies, and heritage assets of archaeological importance. When insuring government buildings, the sum insured is set based on “reinstatement value” (Reinstatement Value), ensuring financial resources to rebuild a new structure of the same standard in the event of loss.

Commercial and industrial risk: It covers risks to stock (Stock) and machinery in large industries and warehouses. “Business Interruption” insurance can also be added, which compensates for income loss when an industry shuts down after physical damage.

2. Motor Insurance: Legal requirement and commercial necessity

In Nepal’s insurance market, motor insurance is the most demanded segment. In line with the Motor Insurance Directive, RBCL insures private, commercial, and government vehicles.

Third Party Liability: This is mandatory under Nepal’s law. It covers third-party death, bodily injury, or property damage caused by the insured vehicle. This also includes accident insurance for passengers, the driver, and the co-driver.

Comprehensive Insurance: In addition to third-party liability, it covers damage to the insured’s own vehicle (such as fire, theft, accident, and riot).

Technical features: RBCL has provisions for transparent implementation of “No Claim Bonus” (discount received if no claim is made) and “Towing Charge” (vehicle towing expense). Depreciation is calculated in strict compliance with the Authority’s standards.

3. Engineering and Construction Insurance

In a developing country like Nepal, risks during infrastructure construction are high. RBCL has been providing this service in projects of national pride.

Contractors’ All Risks (CAR) Insurance: From the start of construction until handover, it covers accidental loss or damage to construction materials, temporary structures, and machinery.

Erection All Risks (EAR) Insurance: Mainly used for hydropower projects (Hydropower) and factories during machinery installation. It also covers the testing period (Testing Period).

Professional Indemnity: This reduces the risk of technical errors that may arise due to mistakes or negligence by engineers or consultants. In major projects, “Third Party Liability” is an integral part of this insurance.

4. Agriculture, Livestock, and Herbal Insurance

To connect the rural economy with the financial system, RBCL has prioritized this sector. This service is fully based on the Government of Nepal’s subsidy policy and directives.

Government subsidy arrangement: The Government of Nepal provides up to 80 percent subsidy on agricultural insurance premiums. The insured farmer needs to pay only 20 percent of the premium.

Scope of coverage: This includes accidental death of livestock (cow, buffalo, goat, etc.), disease or infertility, and crop losses due to pest outbreaks, hail, or drought.

Technical verification: Claims are paid based on reports from veterinarians or agriculture technicians. RBCL is delivering this service even to farmers in remote areas by mobilizing agents and technical personnel at the local level. It is also following the concept of “Index-based Weather Insurance” (weather-based insurance).

5. Cyber Security Insurance: Protection for Digital Nepal

To manage new risks created by the growing use of technology, RBCL has launched this modern service. Its target groups include banks and government data centers in particular.

Data Breach and Hacking: It covers financial losses and recovery costs if unauthorized persons access systems and steal or damage data.

Business Interruption due to Cyber Attack: It covers losses when business operations stop because servers go down due to a cyber attack.

Liability Coverage: If confidential information of a third party is stolen from the insured’s system and the insured faces legal action, it provides protection for related expenses, including legal defense cost (Legal Defense Cost).

6. Marine and Aviation Insurance

This insurance is essential for the stability of Nepal’s foreign trade and aviation sector.

Marine Transit insurance: As Nepal is a landlocked country, risks from sea transport to customs points and from there to the final destination (Transit Insurance) fall under this. Coverage is determined based on the nature of goods under “Institute Cargo Clauses (A, B, C).” It covers losses due to theft, accident, sinking, or damages at customs.

Aviation insurance: This includes physical damage to aircraft (Hull Insurance), passenger accident insurance, and third-party liability. Liability as per international aviation standards (Warsaw or Montreal Convention) is included.

7. Miscellaneous Insurance: Specialized risk management

Important business risks that do not fall under other categories are included here:

• Money Insurance: Protection against theft or robbery of cash during transport (Cash in Transit) or cash in a safe/counter (Cash in Safe/Counter).

• Fidelity Guarantee Insurance: Protection for owners against losses if employees misappropriate cash or goods or commit fraud.

• Personal Accident Insurance: Payment of the specified sum insured if the insured dies due to an accident or suffers total/partial disability.

• Bankers Blanket Bond: A policy specially designed for banks, covering fraud, forged signatures, and other financial crimes.

Behind these services, there is support from reputed global reinsurance companies (Swiss Re, Munich Re, etc.), providing financial assurance to pay claims even in large disasters.

While focusing on underwriting excellence, the company maintains proper premium rates through correct risk assessment. To make the claim settlement process easier for clients, it deploys independent surveyors and relies on technical audits as a key basis. In this way, RBCL has strengthened its role as a professional, responsible, and reliable government insurance provider in Nepal’s insurance market.

Organizational Structure and Human Resources

Company operations are overseen by a high-level Board of Directors, which includes representatives from the Government of Nepal, the Ministry of Finance, the Employee Provident Fund, and Nepal Bank Limited.

Current structure of the Board of Directors:

• Chairperson: Dinesh Upadhyay (Government of Nepal representative)

• Directors: Bolraj Acharya (Ministry of Finance), Sagar Kumar Singh (Employee Provident Fund), Prakash Kumar Adhikari (Nepal Bank), and other professional experts.

Human resources:

The company currently has 210 employees, including 114 permanent employees. Recruitment for positions requiring technical and business knowledge is regularly conducted through the Public Service Commission process, maintaining efficiency and transparency in service delivery.

Capital Structure and Financial Strength

RBCL is among the non-life insurance companies in Nepal with one of the strongest capital bases. Its capital structure is dominated by government and institutional investment:

• Government of Nepal: 41.03%

• Employee Provident Fund: 19.37%

• Nepal Bank Limited: 9.60%

• Public: 19.54%

Investment and profit:

The company has invested in shares of major institutions such as Nabil Bank, Nepal Investment Mega Bank, and Nepal Reinsurance Company. Up to the end of Ashad 2082, the company’s investment in fixed deposits of commercial banks and development banks alone stands at NPR 6.77 billion (677 crore). The company’s earnings per share (EPS) and net worth are significantly above the industry average.

National Network and Access

RBCL has expanded its services across all seven provinces. Currently, it provides services through 23 offices:

• Koshi Province: Birtamod, Itahari, Biratnagar.

• Madhesh Province: Birgunj (branch and sub-branch), Lahan, Janakpur.

• Bagmati Province: Kathmandu (central office), Hetauda, Narayanghat, Nuwakot, Banepa, Bhaktapur.

• Gandaki Province: Pokhara.

• Lumbini Province: Bhairahawa, Dang, Nepalgunj, Palpa.

• Karnali Province: Surkhet, Jumla.

• Sudurpashchim Province: Dhangadhi, Bajhang, Doti.

Reinsurance Market and Global Ties

Reinsurance is mandatory in insurance business to share risk. RBCL has been working with globally recognized reinsurance companies, strengthening its trustworthiness at an international level.

Key reinsurance partners:

Swiss Re, Hannover Re, Munich Re, GIC India, Oriental Insurance India, Sava Re, Ocean Re, and others. Such international ties make the company more capable of paying large claims.

Role of Agents and Surveyors

A total of 296 active insurance agents play an important role in expanding the company’s business. They act as a bridge to spread insurance awareness and bring services to citizens’ doorsteps.

Similarly, 191 surveyors are listed for loss assessment, helping make the claim settlement process reliable and impartial.

Corporate Social Responsibility and Audit

RBCL has given high priority to completing long-pending audit work. Audits up to fiscal year 2076/77 have been completed and the annual general meeting has been held, while the work for FY 2077/78 is in the final stage. This is presented as an excellent example of financial discipline and transparency.

The company fulfills its social responsibility through activities such as running insurance literacy campaigns in rural areas, facilitating subsidies for agricultural insurance, and supporting public health sectors.

Real Estate and Infrastructure

The company’s financial value is reflected not only in cash but also in its real estate. In Kathmandu’s Ramshah Path, there is 15 ropani of land under joint ownership with Rastriya Jeevan Beema Company, where the goal is to construct its own head office building.

In addition, the company has its own buildings and land in Birgunj, Dhangadhi, and Bhairahawa.

Why Choose RBCL?

As an editor, when I analyzed RBCL, I found the following three aspects to be the strongest:

• Government guarantee and security (Authoritativeness): Compared to private-sector companies, as a government-owned company there is a higher level of security in investment and claim payments. Under the “Your Money Your Life” (YMYL) principle, the presence of a government institution in a sensitive sector like insurance is presented as the biggest trust factor.

• Experience and expertise (Experience & Expertise): With a decades-long history, the institution has a deep understanding of Nepal’s geography and risks.

• Financial discipline (Financial Discipline): With billions in investment and strong profit capacity, the company is capable of paying even very large claims.

Conclusion

Rastriya Beema Company Limited (RBCL) is not only a business institution; it is a partner in Nepal’s economic prosperity. By adopting the core principle of “mobilizing internal resources and conserving external currency,” it has maintained a dominant presence in the non-life insurance sector.

Despite growing competition in the market, due to high professional ethics, customer-focused service, and responsibility toward the nation, RBCL remains in a leading position. In the coming days, with greater use of digital technology and further expansion in rural areas, it is stated that it will take Nepal’s insurance market to a new height.

Disclaimer: This information has been prepared based on the available information and official statistics. Before making insurance-related decisions, readers are requested to contact the company’s official website or office to obtain further information.