Now, Foreign Re Too Can Operate Their Office in Nepal

Kathmandu: Beema Samiti has issued ‘Reinsurance Broker Directive 2078’ to facilitate broker services for reinsurance companies. The directive is aimed at promoting the reinsurance busines.

The directive stipulates that the authorized and paid up capital of a reinsurance broker must be at least Rs. 100 million and Rs. 50 million respectively.

Out of the capital specified by the broker, 25 percent of the authorized capital should be air-marked by the Samiti and kept in the fixed deposit account of the commercial bank.Other arrangements related to authorized capital and paid-up capital may be specified by the Samiti from time to time.

In order to act as a reinsurance broker, the organization has to get permission from the regulator,Beema Samiti.The organization can submit application along with feasibility study report, MoA and AoA, personal details of the chief executive officer or chief manager of the organization and other documents or details deemed necessary by Samiti.

Any insurance company or reinsurance company operator, public shareholder, employee or office bearer, consultant, advisor, auditor, insurer or person having business business with reinsurer will not be eligible to work as a broker. Similarly,  a person who has obtained the license of insurance agent, surveyor, third party facilitator or any other insurance intermediary shall not be allowed to get the license of reinsurance broker or to be a direct or indirect work as reinsurance broker.
Arrangements have been made for foreign reinsurance brokers to open liaison office or branch office in Nepal. They are required to deposit US 50,000 as security deposit before obtaining permission.

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