The insurance industry is a key component of the financial sector, providing risk mitigation tools essential for businesses and individuals alike. Globally, insurance spans life, health, property, liability, marine, aviation, and many other categories, and Nepal is no exception in requiring a broad range of insurance products. Although Nepal’s insurance market developed later compared to some countries, it has been expanding rapidly as awareness grows about the benefits of insurance coverage. Dozens of insurers (life and non-life) operate under the oversight of the Insurance Board (now reconstituted as the Insurance Authority), which regulates everything from licensing of insurers and brokers to approval of insurance products, premium rates (in certain lines), and solvency margins. The technical nature of insurance contracts and the evolving regulations often lead to complex issues – for instance, interpreting policy exclusions, handling claims in cases of underinsurance or double insurance, and managing reinsurance arrangements for risk spreading. Additionally, as the market matures, disputes between insurers and insureds or among insurance companies (like in reinsurance recoveries) are on the rise.

Gandhi & Associates has a comprehensive insurance practice, advising insurance companies, intermediaries, and corporate policyholders on both contentious and non-contentious matters. We assist new entrants (insurers, reinsurers, brokers) in navigating the licensing process in Nepal, preparing the required documentation and ensuring they meet all regulatory criteria. For existing insurers, we advise on product development and policy wording, helping tailor insurance products to comply with local law while meeting customer needs (for example, life insurance policies, motor and property insurance, professional liability policies, etc.). Our team also provides regulatory compliance counsel, keeping clients updated on directives from the Insurance Authority – such as those relating to investment of insurance funds, reserve requirements, or agent commissions – and helping them implement necessary changes. In disputes, our lawyers represent insurers in defending or settling claims, as well as represent insured businesses in making or litigating claims to obtain due coverage. We have specific experience in areas like reinsurance (structuring reinsurance programs, and handling disputes over reinsurance recoveries), underinsurance issues (resolving claims where coverage may not fully meet the loss), and brokers’ liability. Our dual insight from representing both insurers and insured parties allows us to approach issues with a 360-degree perspective, facilitating effective and fair resolutions.

Representative Experience:

• Advised a newly established reinsurance brokerage on securing regulatory approvals and meeting capital and compliance requirements under Nepal’s insurance laws;
• Provided ongoing advice to project developers and financial institutions on insurance issues in project financing – for example, reviewing whether appropriate insurance (construction all-risk, third-party liability, business interruption, etc.) was in place for large infrastructure projects and advising hotel chains on obtaining adequate liability insurance coverage as a condition precedent to financing; and
• Advised corporate and institutional clients in procuring specialized coverage such as fiduciary liability insurance for funds and non-profits, ensuring these clients had protection against potential claims of mismanagement of funds or employee benefit plans. This included assisting with policy negotiations and claims procedures to maximize the protection available.