Kathmandu: The Insurance Board is preparing to issue new license for non-life, life insurance and microinsurance companies. The Insurance Board has planned to open the license of the microinsurance company in the month of Kartik(mid November).
The Board is ready to call for the license of the microinsurance company as soon as possible before the Tihar festival holidays. Sources claim that at least 6 non-life insurance and 3 life insurance are under Board’s plan.
There are currently 19 life and 20 non-life insurance companies operating in the market. Due to political pressure, the Board is also preparing to call for licenses of non-life and life insurance companies. It is speculated that the coalition Government will declare mid-term Constituent Assembly and General election this year. It has been witnessed that prior to every general or parliamentary election, the Board has generously issued license to new insurance companies. Five years ago, the Board had given licenses to 10 life and three non-life insurance companies.
As per the rules, licenses of life insurance companies will be issued by the government. However, in the case of non-life, re-insurance and other types of insurance companies, the Insurance Board itself can issue licenses. As there is no provision in the Insurance Act regarding micro-insurance companies, the Board has to amend the existing Directive 2073 regarding insurance registration and operation of insurance business before calling for a license. Or a separate guideline on micro insurance company registration and micro insurance business operation may be issued.
