Kathmandu, July 1
Insurance Pool, Nepal (Akasmik Beema Kosh) is being transformed into the first reinsurance company of the country within few days, according to the authorities concerned.
The Board of Directors of the Insurance Board and the Pool have approved the plan to create ‘Nepal Reinsurance Company Limited’, and have already forwarded to the Ministry of Finance for its approval, according to a source.
“We forwarded the file to the ministry on Saturday,” an official with the Insurance Board said.
It may be noted that though the Insurance Board have been striving to set up a reinsurance company in Nepal itself for the past five years, it had not been able to do so due to various impediments, including fluid political situation in the country.
Now the regulator of the insurance sector has expressed confidence that the reinsurance company will be set up as soon as the next few days – and it won’t take weeks or months.
Joint Secretary at the Finance Ministry Krishna Devkota said that the ministry is currently studying the file forwarded by the Pool to convert it into the reinsurance company, and that the ministry itself wants the company to be established at the earliest in the greater interest of the nation.
“We will forward the file to the cabinet within the next few days for its approval,” Devkota added. “Once the cabinet approves it, the process of establishing the reinsurance company will start immediately.”
He even said that the reinsurance company may be established within the current fiscal year if things go as planned.
As the plan, the government of Nepal, 17 non-life insurance companies as well as their shareholders will have stake in the reinsurance company, which will immediately have a paid-up capital of Rs 3 arba.
The Finance Ministry official added that they are planning to shore up the proposed company’s paid-up to Rs 5 arba very soon.
“Life insurance companies, too, will be brought into the domain of Nepal Reinsurance Company in the days ahead,” he further informed.
Click here for General knowledge of Reinsurance
Insurance Pool, Nepal (Akasmik Beema Kosh) is being transformed into the first reinsurance company of the country within few days, according to the authorities concerned.
The Board of Directors of the Insurance Board and the Pool have approved the plan to create ‘Nepal Reinsurance Company Limited’, and have already forwarded to the Ministry of Finance for its approval, according to a source.
“We forwarded the file to the ministry on Saturday,” an official with the Insurance Board said.
It may be noted that though the Insurance Board have been striving to set up a reinsurance company in Nepal itself for the past five years, it had not been able to do so due to various impediments, including fluid political situation in the country.
Now the regulator of the insurance sector has expressed confidence that the reinsurance company will be set up as soon as the next few days – and it won’t take weeks or months.
Joint Secretary at the Finance Ministry Krishna Devkota said that the ministry is currently studying the file forwarded by the Pool to convert it into the reinsurance company, and that the ministry itself wants the company to be established at the earliest in the greater interest of the nation.
“We will forward the file to the cabinet within the next few days for its approval,” Devkota added. “Once the cabinet approves it, the process of establishing the reinsurance company will start immediately.”
He even said that the reinsurance company may be established within the current fiscal year if things go as planned.
As the plan, the government of Nepal, 17 non-life insurance companies as well as their shareholders will have stake in the reinsurance company, which will immediately have a paid-up capital of Rs 3 arba.
The Finance Ministry official added that they are planning to shore up the proposed company’s paid-up to Rs 5 arba very soon.
“Life insurance companies, too, will be brought into the domain of Nepal Reinsurance Company in the days ahead,” he further informed.
Click here for General knowledge of Reinsurance
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