Section 121: Priorities on the Payment of Liabilities in Case of Liquidation of the Insurance company

Notwithstanding anything contained elsewhere in the prevailing laws, in case the insurer is dissolved or insolvent, payment of liabilities shall be made on the basis of the following order of priority:

(a) Expenses incurred for liquidation or insolvency of the insurer,

(b) Amount to be paid or remained unpaid to the insured,

(c) Taxes, duties and fees to be paid to the Government of Nepal as per the prevailing laws,

(d) Amount of regulation fees to be paid to the Authority,

(e) Remuneration or commission to be obtained by insurance intermediary,

(f) Amount remained to be paid to another insurer instead of the insurance,

(g) Payment of salary, allowances, provident fund, gratuity and other amount due to employees which remained as unpaid

(h) Other liabilities to be borne by the insurer,

(i) Any other liabilities to be paid or fulfilled by the insurer,

(j) Amount to be received by shareholders.