April 25, 2022 | Investopaper
21 insurance companies have submitted their capital increment plans as per the guidelines of the Insurance Board.
Out of the total 39 insurance companies operating in Nepal, 21 have submitted plan for increment of paid-up capital, the board said.
According to the board, Asian Life, Surya Life, National Life, Mahalaxmi Life, Gurans Life, MetLife, LIC Nepal, Sanima, Citizens Life and Reliance Life Insurance Company have submitted capital increment plan.
Similarly, Sanima General Insurance, IME General, Everest, Prudential, Neco, Lumbini General, Shikhar, Nepal Insurance, Sagarmatha, Ajod and General Insurance Company have submitted the plan.
As per the directive of the board, all the insurance companies should submit the capital increment plan within Baisakh 10. However, only 10 life insurance companies and 11 non-life insurance companies have submitted the plan.
Of the 39 insurance companies, there are 19 life insurance companies. Nepal Life Insurance Company has already met the paid up capital specified by the board with the capital of Rs. 8.20 billion. Similarly, there are currently 20 non-life insurance companies operating in Nepal.
The Insurance Board had issued a circular on Chaitra 10 directing to increase the paid up capital of all insurance companies by two and a half times. The Board has directed to increase the paid up capital of life insurance companies to Rs. 5 billion and non-life insurance companies to Rs. 2.5 billion. Companies will have to reach the required capital by Chaitra end, 2079 BS.