October 23, 2019 | Investopaper
With the intention to reduce the fraudulent activities prevalent in the insurance sector of Nepal, the Insurance Board has stepped forward to form the Insurance Information Centre (IIC). The board is in talks with the insurance companies to participate in the establishment of IIC. The insurance companies are interested to invest in the shares of the Insurance Information Centre, as per the board.
The module for establishing the IIC is already formed. Each insurance company will purchase shares worth Rs. 1 lakh while the insurance board will invest Rs. 3 lakh. Hence, IIC will have a total capital of Rs. 43 lakh.
At current, 19 life insurance, 20 non-life insurance, and 1 re-insurance company are operating in Nepal.
The Insurance Information Centre will help control the fake cases faced by insurance companies.