KATHMANDU, April 26: Most of the insurance companies have sought to issue right shares in order to raise their capital base that has been made mandatory by the Insurance Board (IB).
According to IB, 34 insurers submitted their capital increment plans to the regulator in the stipulated deadline that ended on Sunday. The IB has asked the life insurance companies to increase their paid-up capital to Rs 5 billion from the existing Rs 2 billion.
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Similarly, non-life insurers will have to raise their capital to Rs 2.50 billion from Rs 1 billion. The IB has fixed the deadline of mid-April 2023 for the insurance companies to raise their capital bases.
Although the IB has been pushing hard to take the insurers to merger through an excessive increase in the capital requirement, most of the companies are not willing to go for a merger. According to the IB, the government-owned Rastriya Beema Sansthan and Rastriya Beema Company along with private sector run The Oriental Insurance Company and National Insurance Company are yet to submit their plans to increase their capital bases.
