3 Establishment of the Fund: (1) A fund named Sundry Insurance
Fund has been established with an objective to make arrangement of
reinsurance for bearing the claim of risk group supposed to be fallen
within the geographical territory under a non-life insurance policy issued
in Nepal and to make payment of other insurance risks relating to the
same.
(2) The following amount shall be remained in the fund under
Sub-rule (1):-
(a) Amount obtained from the Government of Nepal.
(b) Membership fee obtained from the insurer.
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(b1) Seed money obtained from the member insurer.
(c) Amount of risk group reserved in the insurance
policy by the insurers.
(d) Amount of reinsurance commission and profit to be
obtained from the reinsurers by the insurers.
(e) Profit generated by the investment under Rule 8.
(f) Amount to be obtained from other sources.
2
Inserted by First Amendment
3
(2a) A member insurer shall have to deposit the seed money
under Clause (b1) of Sub-rule (1) in the Fund on condition of not to be
less than the amount under Clause (a) of the same Sub-rule; and the
terms and conditions and procedure of payment of such amount shall be
as prescribed by the Board of Directors.
(3) The insurance committee may levy an additional premium to
the 4member insurer in a situation of insufficiency of the amount
deposited in the Fund under Sub-rule (2) to pay the risk under Sub-rule
(1).