Section 66: Insurance Not to Be Done

1) Notwithstanding anything mentioned elsewhere in this act, insurance company shall not undertake insurance risk of assets or liabilities of any of the following persons or corporate bodies:

(a) Liabilities to be borne by the insurer itself

(b) Substantial shareholder, director, advisor, auditor employees or their family members of the insurer

(c) Substantial shareholder of the insurer or their family members

(d) Any firm, company or corporate body who have rights to nominate or appoint its’ director

(e) Any firm, company or corporate body in which director of the insurer has financial interest or any firm, company or corporate body in which any of it’s Directors or his/her family member is working as a Managing Agent or partner.

Provided that, this provision shall not restrict any life insurance company to insure the above-mentioned person, within the purview of the insurance policy and terms and conditions and
limitations provided by the Nepal Insurance Authority.

2) Notwithstanding anything mentioned elsewhere in this section, the provisions of sub-section (1) shall not be applicable to the insurance company undertaking insurance of assets or liabilities under ownership of the Government of Nepal.