BFSI Knowledge Self-Assessment

RBC (Risk-Based Capital) is a regulatory framework set by Nepal Insurance Authority (NIA) requiring insurers to maintain capital proportional to their risk exposure — replacing the earlier solvency margin approach.

Under Section 12 of Nepal's Income Tax Act, a married individual can claim a life insurance premium deduction of up to NPR 40,000 per fiscal year. For single/unmarried individuals, the limit is NPR 20,000.

Nepal Rastra Bank (NRB) is Nepal's central bank and regulates commercial banks, development banks, and finance companies. It issues the base rate directive that all banks must publish monthly.

Human Life Value (HLV) is an actuarial concept representing the present value of an individual's future income contributions to their family. It helps determine the optimal life insurance sum assured needed to replace earning power.

Data Envelopment Analysis (DEA) is a non-parametric efficiency evaluation technique. It compares Decision-Making Units (DMUs) — such as insurance companies — to measure their technical and scale efficiency based on input-output ratios.

IIN (Insurance Institute of Nepal) is a professional development and training body that designs and delivers certification programs, executive workshops, and capacity-building initiatives for Nepal's insurance industry professionals.

Nepal's Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) framework is primarily governed by the Asset (Money) Laundering Prevention Act, 2008 (AMLA), with the Financial Intelligence Unit (FIU) — a department of NRB — as the central coordinating body.