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NIA to issues micro-insurance license to seven companies

Kathmandu, Nov. 27

The Nepal Insurance Authority (NIA) has selected the proposals of seven micro-insurance companies that applied for the license to operate service in difference provinces across the country.

In a notice issued on Sunday, the insurance-sector regulator said that the proposals were selected from the applications that it received in a call made during August-September this year.

The NIA has selected three proposals for micro-insurance in the 'life' category and four in 'non-life' category.

In the 'life' category, proposals of Guardian Micro-Life Insurance Limited, Crest Micro-Life Insurance Limited and Liberty Micro-Life Insurance Limited are chosen. Guardian's head office will be in Biratnagar of Province 1, Crest's in Birendranagar of Karnali Province, and Liberty's in Pokhara of Gandaki Province.

Likewise, in the 'non-life' category, proposals of Trust Micro-Insurance Company Limited, Nepal Micro-Insurance Company Limited, Star Micro-Insurance Company Limited and Protective Micro-Insurance Company Limited are selected.

Head office of Trust will be in Butwal of Lumbini Province, Nepal's in Bharatpur of Bagmati Province, Star's in Janakpurdham of Madhes Province and Protective's in Dhangadhi in Sururpaschim Province.

The country already has 19 life, 19 non-life insurance and two reinsurance companies while the government runs a micro-health insurance as well.

The insurance regulator has opened a license for new micro-insurance companies at the time when it has been urging the companies to go for a merger. As a result, Himalayan General Insurance Company and Everest Insurance Company Limited concluded a merger in July this year to make a new company 'Himalayan Everest Insurance Limited'.

Likewise, half a dozen other insurance companies have shown interest for the merger while some have already signed memorandum of understanding for the same.

According to the NIA, about 41.20 per cent population, including the foreign employment policies, in the country is covered by life insurance. Likewise, insurance penetration is 2.86 per cent in life insurance and 0.81 per cent in non-life insurance.

In terms of gross premium collection, the life insurance companies witnessed a growth of 14.63 per cent in Fiscal Year 2021/22 against that of the 2020/21. In monetary terms, life insurance companies earned Rs. 138.64 billion last year and Rs. 120.95 billion in 2020/21.

Likewise, the non-life insurance companies had earned Rs. 31.7 billion premium in 2020/21 which increased to Rs. 39.17 billion last year; it was a growth of 23.56 per cent.

So far, there are 296,403 insurance agents and 1,240 surveyors in Nepal.

 Published in The Rising Nepal daily on 28 November 2022. 

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