Three new players have received life insurance licences from the Insurance Board (IB), which regulates the insurance market in Nepal.
The three are IME Life Insurance Company, Jyoti Life Insurance and UniLife Insurance. They have to start operations within six months of 2 July when they received the licence, reported Himalayan News Service.
Seven other companies have already received a letter of intent from the IB. They are Citizen Life Insurance, Star Life Insurance, Sun Nepal Life Insurance, Sanima Life Insurance, Reliance Life Insurance, Reliable Life Insurance and Mahalaxmi Insurance.
These companies need to fulfil the minimump aid-up capital requirement and submit their documents to the IB within two months to get an operating licence.
Insurance companies must have a paid-up capital of NPR2 billion (US$19.3 million), according to letter of intent issued by the IB. Of the total paid-up capital, 30% should be set aside for the general public in the form of ordinary shares.
The investors of the seven companies submitted applications to the IB in the fiscal year ended July 2008.
Currently, there are eight life insurance companies operating in the market.