Section 81: Re-Insurance Business

1) Notwithstanding anything mentioned elsewhere in this act, provisions relating to the insurance company undertaking re-insurance business shall be as follows:

(a) The insurance company undertaking a re-insurance business can accept reinsurance of life insurance as well as non-life insurance.

(b) The insurance company undertaking the reinsurance business can accept the re-insurance from the foreign insurance company as well as a foreign re-insurance company or provide a re-insurance service to such foreign insurance company as well as a foreign re-insurance company.

(c) Insurance company doing its business in Nepal shall, compulsorily re-insure its risk, not less than the percentage prescribed by the Nepal Insurance Authority, with a Reinsurance Company established in Nepal.

2) The insurance company undertaking re-insurance business may do such business on its own or through insurance brokers.

3) Other provisions related to the re-insurance business shall be as prescribed.