Kathmandu: The Insurance Board has published public notice to issue licenses for the establishment of 7 micro insurance companies including 3 life insurance companies. The new companies will be national level micro insurers.
The Board has issued a public notice on Friday, calling interested institutions or individuals for the establishment and operation of micro insurance companies, and for the establishment of 3 micro life insurance and 4 micro non-life insurance companies. Interested individuals or organizations should submit proposals within 35 days.
While submitting the proposal for license, there is a condition that the paid up capital should not be less than Rs. 75 crore. According to the notification, proposals can be submitted for the operation of either life or non-life insurance business or both business.
Though the Insurance Board has fixed the paid up capital for micro insurers, the limit for sum assured or business volume has not been disclosed yet.
If the proposer is a general or promoter shareholder in any other insurance company, the details including the name of the company, percentage of investment, representation in the board of directors must be disclosed in the proposal. The Proposer shall not be allowed to invest in any other insurance company with cross holding.
The conditions related to establishment and registration should be mentioned in the proposal, as included in the Insurance Registration and Business Operation Guideline 2073, Paragraph 3, Item 9 and the Micro Insurance Registration Guideline 2079.
The corporate office of the new companies will be established outside the Kathmandu Valley. The Board may designate an office in a particular province.
The proposer has to submit the tax clearance certificate for the year 2077-78 along with proof that he is not on any black list. Feasibility study regarding micro insurance business, if technical partnership with foreign organization has been done, should be mentioned in the proposal.