Kathmandu: The federal government has announced to set up micro insurance company. Finance Minister Janardan Sharma has announced the establishment of a micro insurance company covering the poor and deprived areas to develop the insurance business as an important basis of social security through the budget statement of the coming Fiscal Year 2079/80.
The Insurance Board, regulatory authority, had suggested to the Ministry of Finance to set up a micro insurance company. The Ministry of Finance and the Board have been holding necessary consultations for the establishment of separate micro insurance companies.
The Insurance Act 2049 has no provision for a separate Micro Insurance Company. Therefore, the Board had requested ministry of finance to an arrangement through the budget announcement.
