Insurance Companies to hike paid up capital by 6 times

A new draft of a bill has been prepared which proposes to raise the minimum paid up capital of insurance companies by 6 times. The ministry of finance will finalize the draft within few days. Earlier in the draft of a bill to replace Insurance Act forwarded by Beema Samiti (BS) to the Ministry of Finance, the insurance market regulator 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 opines, if forced to increase by such a huge amount than Insurance companies will protest against it so for now the draft of bill has been prepared which proposes to raise the minimum paid up capital by only 6 times.  Now, Life Insurance Companies needs to have a paid up capital of Rs 3 arba and for Non-life Insurance Companies needs to have a paid up capital of Rs 1.50 arba. The ministry of finance will finalize the draft within few days. Existing paid-up capital requirement for life and non-life insurance companies is Rs 50 crore and Rs 25 crore, respectively. Today, top 10 Gainers list at Nepal Stock Exchange Limited was dominated mostly by Insurance Companies. Insurance Sector at NEPSE went up by 230.49 points.