National Insurance Institute Avoided Liquidation, Proposal for Capital Increase Approved by Council of Ministers, IPO cannot be Issued Immediately

Kathmandu : The government-owned National Insurance Institute has been spared from liquidation. After the Nepal Insurance Authority warned that the Insurance Act 2079 will be applicable to all, if the capital is not provided by October 28th, the Ministry of Finance approved the proposal to provide the capital.

The Ministry of Finance has sent a letter not only to the authority that is waiting for the written answer, but also the oral answer. According to Kavi Pathak of the National Insurance Institute, last week’s cabinet meeting decided to increase the capital of the organization.

According to the decision of the Council of Ministers, it is mentioned in the letter that even if the capital is increased, it will be owned by the government. According to the decision of the Council of Ministers, it is mentioned in the letter that although the capital will be increased, it will not be converted to public for the time being.According to clause (a) of sub-section (3) of section 172 of the Insurance Act, 2079, the authorized capital of the National Insurance Institute is Rs.50 crores and has decided to give approval to convert it into a public limited company by retaining the paid-up capital of Rs.18 crores and 10 lakhs thousand.

Along with this, the Articles of Association of the attached Rashtriya Jeevan Bima Company Limited and the Company’s Regulations, 20 have also been approved. Even though all the movable and immovable assets of the Government of Nepal, which have been capitalized in the National Insurance Institute and indicated in the investment accounts of the Government of Nepal, are owned by the National Insurance Institute Public Limited Company, due to the decision to remain in the ownership of the Government of Nepal, the IPO cannot be issued immediately.