Now Insurance Companies to operate branches in abroad

Mar Mon 2023 02:39:04

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Now Insurance Companies to operate branches in abroad

Kathmandu. Now insurance companies will be allowed to open branches abroad. This provision has been made in the Insurance Branch Office Directory, 2079 issued by the Nepal Insurance Authority.

According to that provision, insurers can now open branches, contact or representative offices of their offices abroad with the prior consent of the authority. (2) According to subsection (1), when opening a branch, contact or representative office abroad, the minimum paid-up capital specified by the authority must be maintained.

It is mentioned in the guidelines that if any action has been taken by the authority against the insurer and the director of the insurer, 6 months should have passed since such action was taken.

With the expansion of branches abroad, it is expected that Nepal's foreign exchange earnings will be good. As the capital of Nepali insurance companies is increasing, it is also included in the regulations to open branches abroad, the authority said. Nepali insurance companies will be allowed to expand their business by operating branch offices in foreign countries.

Insurance companies have to bring three branches outside (outside the valley) to operate one more branch in Kathmandu Valley. The authority said that only after opening three branches outside the Kathmandu Valley and putting them into operation, approval can be given to open one more branch in the Kathmandu Valley.