Insurance Board directs insurance companies to publish capital plan within 3 months

The Insurance Board of Nepal (Beema Samiti) has issued a directive to all insurance companies to increase their paid up capital. The insurance board has directed the companies to publish capital plan within 3 months. As per the new guideline, life insurance companies should maintain a minimum paid up capital of Rs 2 arba by the end of FY 2074/75 and non-life insurance companies should have a minimum paid up capital of Rs 1 arba by the end of FY 2074/75. As per an official of Insurance Board, “Insurance companies have the option to raise the capital by issuing right shares, stock dividends, or also by merger.”