IB Provides LoI to Non-Life Insurers After a Decade

  1 min 19 sec to read

October 9: Almost after a decade of long wait, the Insurance Board (IB) has issued letter of intent (LoI) to three non-life insurance companies.

A meeting of IB’s Board of Directors (BoD) on September 20 has given green signal to three of the total four non-life insurance companies which had sought permission for operating business almost ten years ago.

The companies which have received LoI are Ajod Insurance Company, General Insurance Company Nepal and Sanima Insurance Company.

These companies had applied for LoI in April 2008, December 2007 and August 2008, respectively.

Despite receiving the application in April 2009, the IB is yet to approve the application of Manakamana Insurance Company.

According to Sambha Raj Lammichhane, an officer at the monitoring department of IB, the board has not approved the application of the company as it has failed to submit all the necessary documents.

The IB provides LoI to the companies only if they meet the capital requirement as per the criteria set by the board and if the promoters are not in the blacklist. 

The three companies which have received LoI should follow all the criteria and construct the infrastructure within the next three months. If the companies fulfill all the criteria, then IB will inspect the insurers to give them permission to start business.

As per the rules, IB can approve the applications of non-life insurance companies, while life insurance companies should seek permission from the Ministry of Finance (MoF) to start business.

 

No comments yet. Be the first one to comment.