Surya Prasad Silwal, Chairman of the Insurance Board informed Merolagani that the board is preparing Guidelines for Risk-based Capital, thus, barring life insurance companies from distributing cash dividend.
“The board is requesting life insurance companies to stress on stock dividend instead of a cash dividend in a bid to increase the capital,” he said adding “A circular will be soon issued regarding this.”
He opines that the board is stressing for the stock dividend to prepare the companies for risk-based capital.
IB, on Monday, directed non-life insurance companies to skip cash dividend till the full settlement of COVID-19 insurance claims.
