Section 64: Insurance Premium

1) The insured shall calculate the insurance premium as per the tariff prescribed by the Nepal Insurance Authority.

2) Insurer shall not accept insurance risk and issue insurance policy without receiving all insurance premium.

3) Notwithstanding anything mentioned in sub-section (2), if any practical difficulty arises due to any reason for paying the amount in a lump sum, this Section shall not be deemed to be prohibited to issue an Insurance Policy on the guarantee of a bank or the Nepal Government relating to the payment of the outstanding amount within a specified period.

Provided that insurance policy shall not be issued against bank guarantee of period longer than thirty days.

4) Notwithstanding anything mentioned elsewhere in this section, nothing shall hinder to issue insurance policy in case of life insurance in instalments and in case of specific type/ category of non-life insurance business by payment of partial amount.

5) If insurer do not receive the amount of insurance premium, in time, from the person or corporate body who has responsibility to collect insurance premium and make payment to insurer, the insurer shall provide information about such to the insured.

6) Other provisions related to insurance tariffs and insurance premium shall be as prescribed.