A dozen insurance companies fail to meet paid-up capital requirement «

A dozen insurance companies fail to meet paid-up capital requirement

A dozen of insurance companies fail to meet paid-up capital requirement
A dozen of the insurance companies have failed to meet the minimum paid-up capital requirement within the given time. The insurance regulator has asked the life insurance companies to increase their paid up capital to Rs 2 billion, whereas the minimum paid up capital requirement for non life insurance companies was fixed at Rs 1 billion.
In spite of extending the time to meet the paid up capital requirement by the regulator – Insurance Board (IB) – the some dozen companies failed to meet the paid up capital requirement by mid-June 2019, which made the regulator take action.
According to the board, the Life- Insurance companies include Gurans Life Insurance, Surya Life Insurance, Prime Life Insurance, along with National Life Insurance Agency and MetLife Insurance failed to meet the paid up capital requirement. Similarly, the non life insurance companies including NLG Insurance, United Insurance, Prudential Insurance, Lumbini Insurance, Oriental Insurance, National Insurance, and National Insurance Company also failed to meet the paid up capital requirement.
The Board has, though not finalized the action, is going to seek clarification from the insurance companies. “The Board meeting on Monday decided to ask for clarification with them,’ informed the Board chair Chiranjibi Chapagain.”In fact we have already asked for clarification from some of them,” he said, adding that they have been asked to submit a valid explanation within a week. “We will decide on what action to take after the Board receives explanation.
According to the Insurance Act Article 9, the Board is authorized to either temporarily or permanently stop insurance companies from operating, if the Board’s directions is overlooked or violated.
Currently, there are some 19 life insurance companies, 20 non-life insurance companies and a reinsurance company are in operation in Nepal.

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