31 Companies Requested a License for Micro Insurance Companies; How Many Insurance Companies Will Be Selected?

Thu, Sep 29, 2022 3:19 PM on Stock Market, Latest,

As stated in the budget for the current fiscal year, the insurance committee (Beema Samiti) requested a proposal for the establishment of a micro insurance company. Today, Ashwin 13, at 12 o'clock, the committee's 35-day deadline passed.

Within the time frame set by the insurance committee, 31 companies have requested a license for micro insurance companies. 15 life insurance and 16 micro non-life insurance companies have submitted applications, according to information from the insurance committee.

Micro-life insurance providers among them are Swadesh Life Insurance, Janaki Life Insurance, Guardian Micro Life Insurance, Unnati Micro Life Insurance, Lumbini Micro Life Insurance, Muktinath Micro Life Insurance, Garima Micro Life, CG Life Insure, Protective Micro Life, Liberty Micro Life, Shree Shakti Small Laghubitta Life Insurance Company, Him Shikhar Life Insurance Company, Suraksha Micro Life Insurance Company, and Swargadwari Micro Life Insurance Company.

Similarly, Non-life Insurance Company includes Neo Light Micro (General) Insurance Company, Nepal Micro Insurance, Karnali Micro Insurance, Everest Micro Insurance, Express Micro Insurance, Trust Micro Insurance, Machhapuchhre Micro Insurance, Alpha Micro Insurance, Unnati Micro General, Muktinath General Micro Insurance, Garima Micro Insurance, CG Insurance Micro Insurance, Gandaki Micro Insurance, Star Micro Insurance, Care Micro General and Abhiyan Laghubeema have applied.

Before the committee requested proposals for the establishment of micro insurance companies, about a dozen companies had submitted applications. However, the committee rejected those proposals and requested a fresh proposal.

Only 7 micro insurance companies, 3 life insurance companies, and 4 non-life insurance companies will receive licenses from the committee out of those applications.

It is stated that the planned micro insurance company's paid-up capital must be at least Rs. 75 crores. Additionally, the founders have created arrangements to prevent comparable bids from being made by insurance companies that conduct the same kind of insurance business.

The insurance committee has stated that they will distribute the licenses of micro insurance companies because the existing running insurance companies are unable to reach the aim.

On Bhadra 6, the Insurance Committee had released Guideline 2079 regarding the creation and registration of micro insurance companies, opening the door for their formation. A company that has applied to become a public limited company must distribute at least 30% of its paid-up capital to the general public.

The standards also stipulate that the founder must own at least 51 percent of the company. The directory further specifies that the microinsurance company's corporate office should be located outside of the Kathmandu Valley.