The 360 million to roughly 5 billion dollars in capital that insurance firms have yet to add.

A paid-up capital requirement of 5 billion rupees for life insurance firms and 2.5 billion rupees for non-life insurance businesses has been imposed by the Nepal Insurance Authority.

Fourteen insurance companies have not yet provided this paid-up capital as of yet. It is evident that these enterprises require an additional capital addition of between Rs. 36 crore and Rs. 4.90 crore.

Businesses must use right shares, bonus shares, or further share offerings (FPO) to raise capital. Businesses need to increase their capital by 49 times the amount they already have, or roughly 8%

It is evident that National Life Insurance Company and National Insurance Company, both of which are investments made by the government, need to have a higher level of capital.

Money in the form of share premiums is also held by a few other private corporations. Only the remaining businesses are able to contribute up to 39% of this total. Bonus shares are issued using the share premium amount.

The insurance authority was immediately directed to hold this amount in reserve after the audit committee meeting expressed concerns over the insurance companies' December 2017 premium amount.

For this reason, businesses must either raise capital through the issuance of rights or provide bonus shares based on the amount of their profits.

Companies have approached the Securities Board to request authorization to issue rights in order to raise capital, according to Nirmal Adhikari, the authority's information officer.

The following insurance companies are now applying for approval from the Securities Board: NLG Insurance, Prabhu Mahalakshmi Life, Neko Insurance, Asian Life, Prabhu Insurance, Sun Nepal Life, and Nepal Insurance.

However, the public issue has been put on hold for a while because the Securities Board does not have an executive chairman. According to the official, this is the reason the corporations have been given an extra six months to supply funds. By the end of January of the following year, the enterprises must supply money.