Finance Ministry Directs Insurance Board to Extend Deadline for Paid-Up Capital Requirement

August 25: The Ministry of Finance has directed the Insurance Board of Nepal to extend the deadline for the new life insurance companies which have not been able to meet the paid-up capital requirement. Ten new insurance companies which recently got the license to operate from the Ministry of Finance were supposed to meet the paid-up capital requirement by August 23. Among the new companies, Mahalaxmi Life Insurance Company had written a letter to the Insurance Board on August 20 requesting the regulatory body to extend the deadline.

As the board declined to extend the deadline, the insurance company knocked the door of the finance ministry on Wednesday, August 23. Reacting to the plea made by the company, the ministry directed the board to extend the deadline.

A source at the ministry said that the insurance company had requested for 45 days to meet the paid-up capital requirement and the ministry instructed the board to give time as per the need of the companies.

However, the Insurance Board has not yet decided about extending the deadline, according the board’s director Chiranjeevi Poudel.

“We will hold a meeting and decide after a few days whether to extend the deadline or not,” said Poudel.