Course Contents
Unit I: Introduction to Banking and Insurance Laws 3 hours
The need of regulation in banks and insurance companies; development of banking and insurance laws in Nepal.
Unit II: Registration of Bank and Insurance Companies 8 hours
Bank and insurance companies as legal personality; memorandum of association; articles of association; application for registration; capital requirements; categorization of banks and insurance companies; Relevant provisions of Banks and Financial Institutions Act and Insurance Act in the registration of banks and insurance companies.
Unit III: Corporate Affairs, Accounting and Reporting 10 hours
Corporate reporting; directors’ meetings; provisions relating to maintenance of accounts and auditing, applications of accounting standards to banks and insurance companies; and reporting to shareholders and regulators.
Unit IV: Bank Operations 5 hours
Laws relating to deposit, lending, international trade, remittance and ancillary services; negotiable instruments; capital adequacy ratio; prudential norms relating to capital; and consequences of non-compliance.
Unit V: Legal Framework of Insurance 3 hours
Insurance and the law of contract: general requirements of an enforceable contract; void and voidable; special legal characteristics of insurance contract: insurance as a contract of indemnity, insurance as a personal contract, insurance as a unilateral contract, insurance as a conditional contract, insurance as a contract of adhesion, insurance as a aleatory contract, and insurance as a contract of utmost good faith.
Unit VI: Regulation of Insurance Industry 6 hours
Goals of insurance regulation; current regulatory structure; federal versus state regulation; areas of regulation: solvency regulation, market regulation, regulation of rates; claim procedures and settlement; breach of contract; disputes of insurance; semi judiciary role of Insurance Board in claim settlement; and ombudsman.
Unit VII: Corporate Governance in Banks and Insurance Companies 3 hours
Principles of corporate governance; Nepal Rastra Bank’s directives to banks on corporate governance; and Insurance Board’s directives to insurance companies on corporate governance.
Unit VIII: Major Regulations and Regulators of Banking and Insurance 10 hours
Features and coverage of Banks and Financial Institutions Act 2006; features and coverage of Insurance Act 1992; features and coverage of NRB Act; features and coverage of debt recovery act and banking offence act; role of Nepal Rastra Bank in regulating banks, and role of Insurance Board in regulating insurance companies.
