Kathmandu, Aug. 6 -- A number of Nepali insurance companies have failed to increase their capital bases even after missing the three-year deadline set by their regulator.

The Nepal Insurance Authority (NIA) had instructed life insurance companies to raise their paid-up capital to Rs 5 billion from the existing Rs 2 billion. Similarly, non-life insurers were directed to increase their capital to Rs 2.5 billion from Rs 1 billion.

In April 2022, the NIA directed insurers to either increase their capital base or opt for mergers if they failed to comply. Initially, it gave them 30 days to submit their capital increment plans. In response, 34 insurers submitted their plans within the stipulated period.

Following this, the NIA set a deadline ...