Wednesday, August 2, 2017

Three more firms get Insurance licence

Three more life insurance companies have obtained operating licence from the Insurance Board today.
The insurance sector regulator granted Sun Nepal Life Insurance, Reliance Life Insurance and Reliable Life Insurance, according to Insurance Board (IB).
Altogether six new life insurance companies have obtained the operating licence since the the board resumed granting licence to the companies, whose applications were pending since long.
Earlier the board had granted operating licence to three life insurance companies including IME Life Insurance, Union Life and Jyoti Insurance, making a total of six new players. The entry of new life insurance companies in the market has made a total number of life insurance companies in the country to 15.
After increasing the paid-up capital requirement through the ‘Directives on Insurer Registration and Insurance Business Operation’ to Rs 2 billion and Rs 1 billion for life and non-life insurance companies, respectively, the insurance sector regulator has started granting licence. The companies that had submitted applications in the fiscal year 2007-08 were given three weeks’ time to resubmit applications with new capital requirement.
Earlier, Life Insurance companies need to have Rs 500 million paid-up capital and Rs 250 million for non-life firms.
Meanwhile, the board is also planning process for non-life insurance companies. The board has received four applications – from General Insurance, Sanima Insurance, Ajod Insurance and Manakamana Insurance – for the operating licence of non-life insurance companies.
There are currently 17 non-life insurance companies in operation in Nepal.

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