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Investment instructions issued to insurance companies, how much can they invest in which sector?

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लगानी न्यूज

Kathmandu. The Nepal Insurance Authority (INSURANCE) has issued ‘Insurer’s Investment Directive, 2082’ regarding the investment of financial resources of life, non-life, micro and reinsurance companies. Subject to the directive issued by the AUTHORITY on Tuesday( September 17), the insurer will have to implement the ‘Investment Policy’ after getting it approved by the Board of Directors.

directives have been issued with the objective of encouraging insurers to invest in safe sectors, making arrangements for investment in various sectors in order to diversify the insurer’s investment, managing investment in a manner that meets the insurer’s liquidity and assets and liabilities, and making the internal control system and risk management system related to the insurer’s investment effective. ।

TAG_OPEN_div_16 The Authority has made a provision that life insurance companies can invest up to 15 percent of the paid-up capital of the listed company in founders or general shares. Life insurance companies will also be able to invest up to 15 percent of their total investment in such companies.  The Insurance Authority has made this provision by issuing the Insurance Authority’s Investment Directive 2082 BS. Earlier, life insurance companies were allowed to invest only up to 10 percent of their total investment in such companies.

TAG_OPEN_div_14 Similarly, companies investing can invest only up to five percent of their paid-up capital under the 2080 directive.  The investment limit that life insurance companies can make in government bonds has also been increased. Earlier, up to 25 percent of the total investment could be invested in such bonds, but now it can be done up to 35 percent.

TAG_OPEN_div_12 The deposit limit that life insurance companies can keep in ‘B’ category development banks has also been increased from 10 percent to 15 percent.  The deposit limit for ‘C’ category financial institutions has been increased from five percent to seven percent. Non-life insurance companies can also invest up to 10 percent of their total investment and up to 15 percent of the paid-up capital of the company to be invested. There is also no change in the investment limit that non-life insurance companies can do according to their total investment.

TAG_OPEN_div_10 However, only up to five percent of the paid-up capital of the company to be invested in this way was allowed. The investment limit for non-life insurance companies in government bonds has been increased from 20 per cent of the total investment to 30 per cent.  Non-life insurance companies develop b category

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