Kathmandu: Nepal Insurance Authority has issued new operating licenses to two more micro-insurance companies. According to the officials of the Authority, the operating license has been issued to Crest Micro-life Insurance Company and Protective Micro Insurance Company.
Crest Micro-life Insurance has its headquarters at Birendranagar of Karnali Province and Protective Micro Insurance has its headquarters at Dhangadi of Sudurpaschim Province.
Earlier, on Sunday, the Authority issued an operating license to Guardian Life Micro Insurance and Nepal Micro Insurance Company. There are three more micro insurance companies in the pipeline for an operating license. The rest of the three proposed micro insurance companies include Star Micro Insurance, Trust Micro Insurance, and Liberty Micro Insurance Company. The proposed promoters of these three micro insurance companies find it hard to make arrangements for equity capital amid the liquidity crunch in the bank and financial institutions and requested the Authority to provide additional 45 days for the fund arrangement.
The minimum paid-up capital for microinsurance companies is NPR 750 million. Out of which, a minimum of 51 percent must be contributed by the promoter shareholders.
Microinsurance companies are the first of their kind in the insurance industry of Nepal. The Authority claims that with the emergence of specialized insurers, the access of marginalized community and ultra poor community to insurance will increase.
