Jul Sun 2022 05:39:58
Kathmandu, July 9: Insurance companies are currently in the final stages of merging. Seven insurance companies have already signed a merger agreement, while some companies are trying to reach a merger agreement. Of them, 5 life insurance companies and 2 non-life insurance companies have signed MoUs and submitted them to the Insurance Committee.
The Insurance Committee has urged the insurance companies to increase their capital and now the insurance companies are continuing the process for merger. Rajuraman Poudel, executive director of the committee, said that only seven companies had signed the MoU for the merger.
There is no agreement between the union, Prime and Gurasan Life Insurance on the merger and the possibility of merger has increased. Though Prabhu Life Insurance, Mahalakshmi Life Insurance and Sanima Life Insurance are discussing about merging, they have not been able to reach a concrete conclusion.
Some of the companies in operation do not want to go for merger. The first number of which is Nepal Life. Nepal Life Insurance is a strong company in terms of capital. The Insurance Committee has made provision for a paid up capital of Rs 5 billion. But now that there is more than the specified capital, there is no obligation for Nepal Life Insurance to merge.
Life Insurance Corporation is also not in favor of merging. On the other hand, the state-owned company Rastriya Bima Sansthan is an institution that defies the directives of the regulatory body. The company has not discussed the merger. As it is a government-invested company, it will not be merged.
Mete Life, a branch of American Life Insurance, will not merge. It is not even touched by the directive of the Insurance Committee. Besides, National Life Insurance Company is also in favor of not merging.