March 12: Preparations are underway to establish a new non-life insurance company by a former executive director of the Insurance Board although the board had announced to stop issuing license to new insurance companies.

The Insurance Board had stopped issuing license to both life insurance companies and non life insurance companies some three years ago. However, Shreeman Karki, former executive director of the Insurance Board, is preparing to establish a new non-life insurance company named Genuine Non-Life Insurance Company.

The proposed company will have a capital of Rs 1 billion. Forty percent of the capital, amounting to Rs 400 million, will be owned by private sector. Listed companies and the public will have share ownership of 30 percent each amounting to Rs 300 million.

The company is preparing to  issue IPO after it starts operation, informed Karki. The private sector has already pledged an investment up to Rs 400 million, said Karki. Listed companies have been notified of the investment proposal.

Karki said that the company has given priority to small investors instead of big ones. Companies can make investment ranging from Rs 100,000 to Rs 10 million. “We have prepared investment modality preferring small investors and investment has been collected accordingly,” said Karki, adding, “This model has been adopted to set an example of establishing a big company from small ones.”

The preparation to establish the company is in the final stage.

“The Insurance Board has decided not to issue a new license but we will try to convince it with our proposal and register the company,” he said.

 “The new company will particularly focus on health insurance as it has been disregarded by other insurance companies. We expect to earn profit gradually after few years of establishment,” he added.

Along with the health insurance, the company aims to focus on agriculture insurance, and has plans to make payment cashless and make health insurance claims hassle-free.