Kathmandu: The Insurance Board seems reluctant to its stand of the deadline of paid-up capital increment. Chairman Surya Prasad Silwal has made it clear that no compromise will be done by the regulatory authority in terms of the deadline for the revised regulatory paid-up capital requirement.
He said, ”There won’t be any excuse for the implementation of new paid-up capital requirement. If the deadline is missed, we would be forced to compel insurers for merger. He also claimed that the Insurance Board has not given any pressure for merger rather facilitated the merger process and arranged for incentives.
The Board has given a deadline of Chaitra 2079 to maintain minimum paid up capital. As per the new directives of the Board, the minimum paid-up capital for the non-life insurers is Rs.2.5 billion while Rs.5 billion for the life insurers.
Silwal has expressed his commitment that the Board is ready to do whatever it needs to support for the merger. He claimed that there is no room left for insurance companies to complain about capital increment policy.
He said that the Board also helped a lot during the merger of Himalayan Journal Insurance Company and Everest Insurance Company. He thanked and congratulated the merger committee of Himalayan and General for working as an example that it is possible to merge on time.
Chairman Silwal has informed that insurance companies that do not raise the specified capital will be prohibited from doing business beyond the limit of their paid-up capital. Chairman Silwal said that a company with a capital of only one billion rupees cannot take more business than its capacity. He said, “If it has been taken, it should be minimized.”