Insurance Board directs non-life insurance companies to increase paid up capital up to Rs 1 arba & life insurance companies up to Rs 2 arba

The BOD meeting of Insurance Board (Beema Samiti) has directed insurance companies to increase their paid up capital. As per the new directive, non-life insurance companies should increase their paid up capital to a minimum of Rs 1 arba and life insurance companies should increase their paid up capital to a minimum of Rs 2 arba. The companies have until Ashad 2075 to increase their capital. As per the existing provision, non-life insurance companies had to maintain a minimum paid up capital of Rs 25 crore and life insurance companies had to maintain a minimum paid up capital of Rs 55 crore. Currently, there are 9 life insurance companies and 18 non-life insurance companies operating in Nepal.