Kathmandu: The promoters of three proposed micro insurance companies could not arrange promoters’ capital amid the liquidity crunch in the financial market. Out of seven proposed micro insurers, the promoters of Liberty Microinsurance Company, Star Microinsurance Company, and Trust Microinsurance Company could not make arrangements for promoters’ equity capital within the deadline given by the Nepal Insurance Authority.
The promoters of these three proposed insurers have formally requested the Authority to grant additional 45 days to make necessary arrangements for the equity capital.
Among the rest of the four companies, Guardian Micro Life Insurance and Nepal Micro Insurance have made arrangements for equity funds from their promoters to obtain the operation license. Dipak Bhatta is the major promoter of Nepal Micro Insurance and Brewery king Raj Bahadur Saha is the major promoter behind Guardian Micro Life Insurance. Crest Micro Life and Protective Micro Insurance have not applied to the Authority yet after the arrangement of paid-up capital.
The minimum paid-up capital for microinsurance companies is NPR 750 million. Out of the minimum paid-up capital, the promoter shareholders must contribute 70 percent which equals NPR 525.
