KATHMANDU, NOVEMBER 24: Nepal Insurance Company is materialising its plans to increase its paid-up capital as directed by the Nepal Insurance Board. As per the plan, the non-life insurance company has already sold its lands in Biratnagar to Himalayan Everest Insurance at Rs 100 million. Likewise, it is engaged in a process to sell its shares worth 600 million.
As per the regulator of the insurance sector, the minimum stock of the paid-up capital of any non-insurer should be Rs 2.50 billion. The current level of such kind of capital of Nepal Insurance stands at Rs 1 billion 489 million 300 thousand. So, the company needs an additional amount of Rs 1 billion 20 million to fulfill the requirement set by the board.
Chanda Nath Upreti, communication officer of Neal Insurance, says, “It is already certain that we will raise a total of Rs 700 million by selling lands and shares to increase the paid-up capital to Rs 2.50 billion. The company plans to arrange more required money in this regard from issuing bonus and right shares.”
It is worth noting that the board had directed all non-insurance companies to increase their paid-up capital to the set level by the last July 16. Though Nepal Insurance failed to do so, the board did not take any action against it . The reason for giving such leeway to Nepal Insurance was its status as Nepal’s first non-insurance company under the ownership of the government.