Section 73: Investment in Subsidiary Company

1) An Insurance company may, with approval from the Nepal Insurance Authority, incorporate its own subsidiary company or invest in such companies.

2) While granting approval for incorporation of its own subsidiary company or making an investment in such companies pursuant to sub-section (1), the Nepal Insurance Authority may prescribe necessary terms and conditions, and it shall be the duty of the concerned insurer to comply with such terms and conditions.

3) Notwithstanding anything mentioned elsewhere in this section, an insurer shall not incorporate a subsidiary company or make investments in such companies, which are undertaking the same type of insurance business as that of such insurer.

4) Other provisions related to investments to be made by the insurer shall be as prescribed by the Nepal Insurance Authority from time to time.