Insurance companies need to increase paid up capital by 6 times

Kathmandu December 15- The ministry of finance is proposing to finalize a draft to raise the minimum paid up capital of insurance companies by 6 times within few days.

Forwarded by Beema Samiti (BS) to the Ministry of Finance, the insurance market regulator body has proposed to raise minimum paid-up capital of life insurance companies by 10 times to Rs 5 billion and non-life insurance companies by 16 times to Rs 4 billion.

Ministry of Finance is taking precaution to avoid protest from insurance companies if the bill is regulated forcefully thus the ministry is drafting the bill which will urge the companies to increase paid up capital by 6 times.  Therefore, Life Insurance Companies needs to have a paid up capital of Rs 3 billion and for Non-life Insurance Companies needs to have a paid up capital of Rs 1.50 billion.

Existing paid-up capital requirement for life and non-life insurance companies is Rs 500 million and Rs 250 million, respectively. Source: Sharesansar