Kathmandu: All the life and non-life insurance companies that have signed the merger agreement have prepared the DDA (Due Diligence Audit) report. According to the Insurance Board, all the companies have informed that the DDA report has been prepared. But so far no company has submitted the DDA report to the Board.
The Board has instructed them to submit a progress report and action plan along with the format by writing to all of them. Along with the directives of the Board, most of them have submitted the work plan for integrated business within the end of Paush 2079.
According to the insurance regulatory, Guransh Life, Union Life and Prime Life, have already prepared the DDA report. They have submitted an action plan for integrated business from 1st of Kartik. Similarly, Jyoti Life and Surya Life have also announced that they will do integrated business from 1st of Kartik. Reliance Life and Sanima Life, Prabhu Life and Mahalakshmi Life have expressed their commitment to do business by the end of Paush 2079.
On non-life insurance, Premier Insurance and Siddharth Insurance have announced that they will do joint business in Magh, while Sanima and General have expressed their commitment to do joint business in Kartik. Sagarmatha Insurance and Lumbini General Insurance have expressed their commitment to conduct integrated business in Chaitra, while Ajod and Prabhu have made preparation to conduct integrated business in Chaitra.
Rajuraman Paudel, executive director of the Board, has informed that efforts are being made to put pressure on the companies so that they do not delay the work for a long time after the merger.
On 10th of Chaitra 2078, the Board had instructed to increase the minimum paid-up capital for life insurance companies from Rs.2 billion to Rs.5 billion and for non-life insurance companies from Rs.1 billion to Rs.2.5 billion within Chaitra end of 2079. So far, Himalayan General and Everest Insurance Company have already kicked off their integrated transaction after merger in the name of Himalayan and Everest Insurance Company.
