Nepal Insurance Authority to Transfer Rs 5 Billion to Government Account

Kathmandu – The Nepal Insurance Authority (NIA) has initiated preparations to transfer approximately Rs 5 billion from its fund to the government account of the Ministry of Finance. Out of the Rs 9 billion collected by the Authority as regulatory fees, one-third will remain in the Authority’s fund, while the remaining amount will be deposited into the government treasury.

Chairman Madan Dahal has already begun the necessary procedures to facilitate the transfer. The significant amount in the Authority’s account has strengthened its financial standing, but with the government’s treasury facing a shortage, an ordinance has been introduced to redirect funds from the Authority to the government account.

In a related development, discussions have begun to use a portion of the Authority’s funds to address the low paid-up capital of two government insurance companies—Rastriya Jeevan Beema Company and Rastriya Beema Company. Both companies have struggled to meet the paid-up capital requirements set by the Authority, leading to operational challenges, corruption issues, and delays in conducting audits.