Kathmandu. A group of Reliable Nepal Life Insurance Company is in preparation for the establishment of a general insurance company called Reliable General Insurance Company(RGI).
The major promoters have proposed to issue promoter’s share to the employees and shareholders of Reliable Nepal Life Insurance. Employees of Reliable Venture, which was established only some time ago, will also get an opportunity to make investment in the proposed company.
The minimum paid up capital of the company will be Rs. 3 billion. The Insurance Board(IB) has already given signal that the minimum paid up capital requirement for future general insurance companies will be Rs. 3 billion. Among which 70 percent must be invested by the promoters.
It is being speculated that the IB is all set to distribute license for life and non-life insurance company along with micro insurance in order to raise funding for the upcoming election. The license distribution is used as a legal tool to illegally collect money from the promoters of the new insurance companies. Though the election for house of representatives is yet to be declared, the Election Commission has proposed to conduct the election during April 2023.