Section 20: Fund of the Insurance Authority

1) The Authority shall have a separate fund of its own.

2) The following amounts shall be credited to the fund as referred to in sub-section 1:

(a) Amounts received from the Government of Nepal,

(b) Amounts received by way of fees from incorporation, prior approval, and licensing of insurance companies,

(c) Amounts received by way of fees from licensing or renewal of insurance intermediaries,

(d) Amounts received by way of the fees for regulatory functions of the authority,

(e) Amounts received from foreign governments, international organisations, institutions or bodies,

(f) Amounts received from any other sources.

3) The approval of the Ministry of Finance shall be obtained in receiving any amount from the government, international organisations, institutions or bodies referred to in clause (e) of sub-section (2).

4) All amounts to be obtained to the fund of the Authority pursuant to sub-section (2) shall be credited to an account to be opened with a licensed bank or financial institution.

5) The expenditures to be made on behalf of the Authority shall be charged to the fund as referred to in sub-section (1).

6) Out of the amounts deposited in the fund maintained as per this section, fifty percent of the amount remaining from the fund after deducting amounts allocated by the authority for operation, management and development of the insurance sector to be used by the authority per year, shall be deposited in provincial reserve fund every year.

7) Other provisions related to the operation of the fund pursuant to sub-section (1) shall be as prescribed.