Kathmandu: Nepal Insurance Authority has granted additional three months to the insurance companies for the paid-up capital increment. The new deadline is set for Asar end of 2079 (Mid July 2023).
In a fresh circular, the Authority has instructed all the insurers to maintain the minimum paid-up capital by the end of the current financial year 079-80. At present, four insurance companies including one life insurer have met the deadline for the regulatory minimum paid-up capital. The minimum paid-up capital for life insurance companies is NPR 5 billion while NPR 2.5 billion for non-life insurance companies.
Among life insurers, Nepal Life Insurance Company (NLIC) already had paid-up capital exceeding the regulatory requirement. Its currently paid-up capital is NPR 8.2 billion. Among non-life insurance companies, Shikhar Insurance Company, Siddhartha Premier Insurance, and Sagarmatha Lumbini Insurance have met the first deadline for the paid-up capital.
There are a total of 17 life insurance and 16 non-life insurance companies in operation. Many of them are under merger process which is expected to conclude by the end of second quarter of next financial year.
