Non-life insurance companies will not pay cash dividends

Jan Mon 2022 02:42:29

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Non-life insurance companies will not pay cash dividends

Kathmandu. Non-life insurance companies will not pay cash dividends this year. Companies have decided not to pay cash dividends to shareholders this year after the regulatory body, the Insurance Committee, stopped distributing cash dividends. The committee has barred companies from distributing cash dividends until Corona Insurance claims are paid. In addition, 20 non-life insurance companies will be able to distribute bonus shares even if they are not allowed to do so.

Rajuraman Poudel, executive director of the Insurance Committee, said that the insurance companies have been instructed not to distribute cash dividends until the corona insurance claims have been paid.

"It has been more than two years since the Corona insurance policy was introduced. The insurers have not yet paid. In that case, it would not be appropriate to distribute cash dividends, so companies have been instructed not to distribute cash dividends until the amount is paid," said Executive Director Poudel.

According to the latest statistics of the committee, out of 159,225 claims, claims amounting to Rs 14.93 billion have been received. Out of that, Rs 3.5 billion has been paid through bridges and Rs 1.28 billion from insurance companies and Rs 4.78 billion has been paid. The committee has stated that the remaining claim of Rs. 10.15 billion is yet to be paid.