Kathmandu: The proposed seven micro insurance companies have got registered their company at the Office of the Company Registrar(OCR). On 11 Mangsir, 2079, the Nepal Insurance Authority asked for letters of intent from seven shortlisted companies to grant operating licenses.
Out of the proposed seven new micro insurers, the Authority will issue 3 licenses for micro-life insurers and 4 for micro-general insurers. The Authority had shortlisted the companies among the 31 proposals received by it. For the life insurance business, Guardian Micro Life Insurance(Biratnagar, Province 1), Crest Micro Life Insurance(Birendranagar, Karnali Province), and Liberty Micro Life Insurance(Pokhara, Gandaki Province) have been shortlisted. Similarly, Trust Micro Insurance Company (Butwal, Lumbini Province), Nepal Micro Insurance Company( Bharatpur, Bagmati Province), Star Micro Insurance Company(Janakpur, Mades Province), and Protective Micro Insurance Company(Dhangadi, Sudurpaschim Province) were selected for the license of the general insurer.
The Authority will go through the articles of association(AoA) and memorandum of association(MoA), micro-insurance policy guidelines, etc before granting letters of intent. Once the AoA and MoA and internal guidelines are approved by the sub-committee of the Authority, the companies will be provided a time frame to raise capital. It has been expected that these companies will come into operation within six months.
The minimum regulatory paid-up capital of micro-insurance companies is Rs. 75 crores. All the proposed companies have to raise at least Rs. 52.5 crore as promoter shareholder’s investment.
