Mero Lagani 2076-5-26
Insurance Board (IB) of Nepal has issued Actuary Valuation Directive, 2076 for the life insurance companies. According to the board, it made timely amendment to previous Actuary Valuation Directive, 2065, hence, the implementation of new directive has annulled the previous directive.
As per the amended directive, life insurance companies are required to transfer a minimum of 90 percent fund earned through the insurance business (before fund allocation to employees) to policyholders’ fund.
Similarly, the board holds the right to direct fund transfer from shareholders’ fund to policyholders’ fund. However, the board restricts fund transfer from policyholders’ fund to shareholders’ fund.
Moreover, the profit rate maintained after all the adjustments should be considered the interim profit rate. Likewise, the insurance companies must appoint actuary experienced in life insurance sector. The actuary working with an insurer has been barred from working with another insurer.