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Insurance companies of Nepal to be more transparent

Insurance in Nepal

Sagarmatha Insurance Company
GPO Box 12211
Thapathali, Kathmandu
Tel: 240896
Nepal Insurance Co. Ltd.

GPO Box 3623
Kamaladi, Kathmandu
Tel: 221353
National Insurance Co. Ltd.

GPO Box 376
Tripureswor, Kathmandu
Tel: 221182

Lumbini General Insurance
Prominent bankers, entrepreneurs, top dealers of automobile and other products, tourism specialist, industrialists, finance companies and vast experience persons in the insurance industry for more than three decades, have jointly promoted Lumbini General Insurance company limited

Premier insurance
Premier Insurance Company (Nepal) Limited has emerged as a renowned general insurance company of the second generation.

Nepal Life Insurance Company


Prudential Insurance Company

Himalayan Gen. insurance
GPO Box 148
Durbar Marg, Kathmandu
Tel: 226634
 

 

News item 4-9-2008

Beema Samiti, the regulatory authority of insurance companies, is doing homework to make insurance companies more transparent. “We are working to make them publish their quarterly reports to maintain transparency and inform small investors about the companies’ financial health,” said Devendra Pratap Shah, chairman of the regulatory authority that has the primary duty to protect policy holders, adding that “protecting the interest of small investors is also our duty.” At present, the insurance companies submit their reports yearly to the board but do not need to publish that in the newspapers. “We have just started a new regulation of submitting detailed reports,” Shah said adding that earlier disclosure system was not very good. The capital market is financial institutions-dominated because they are transparent due to the Nepal Rastra bank (NRB) rule. According to the central bank rule, financial institutions must publish their quarterly accounts regularly. Failure to do so will invite penalty. The insurance company group comes third in terms of trading of their shares at the Nepal Stock Exchange (Nepse) after financial institutions — Commercial banks, development banks and finance companies — and hydropower groups. Currently, 17 insurance companies are listed under the insurance group that has a total of 17,187,384-unit shares worth Rs 1,718,738,400, according to Nepse. They have earned Rs 3.23 billion premium collectively in the fiscal year 2005-06 and the total collection of premium might be above Rs 4.5 billion at the end of 2007-08, but that has yet to be finalised. Apart from these listed insurance companies, new companies like Prime Life Insurance (PLI), Gurans Life Insurance (GLI), Surya Life Insurance (SLI) and Asian Life Insurance (ALI) are floating 1.1 million-unit shares worth Rs 110 million each as life insurance companies need to have Rs 360 million for life insurance while non-life insurance companies need to have Rs 100 million, according to the new regulation. The paid up and issue capital of all these insurance companies is equal to Rs 360 million, of which Rs 250 million belongs to promoters. “Within a year of its operation, Prime Life Insurance will issue 1.1 million-unit shares worth Rs 110 million,” said Laxman Rizal, chief executive officer (CEO) of Prime Life Insurance. N

 

Read more about the transparency of insurance companies in Nepal

 

Other insurance news and articles:

Life Insurance Corporation (Nepal) launches money back guarantee plan (15-8-2008)
Siddhartha Insurance Ltd has allotted the ordinary shares (27-11-2007)
initial public offering Siddhartha Insurance sold out (14-9-2007)
foreign employment insurance scheme forwarded to Ministry of Finance (26-8-2007)

Nepal Life Insurance reports 60% growth (22-7-2007)
Nepal to have reinsurance (5-4-2007)
Three insurance companies lower their returns on premium (14-3-2007)

Rastriya Beema Sansthan (Insurance company) asked to innovate (25-2-2007)
Nepal life Insurance company distributes dividend (13-2-2007)
Imperial Finance to issue shares  (6-2-2007)

 

 

Easy money and insurance in Nepal

 

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