The Insurance Board has decided to award operating licences to four insurance companies and forward the applications to the Ministry of Finance for approval, reports said. Two companies-the American Life Insurance Company (ALICO) and Nepal Life Insurance Company (NLIC)-already have ministry approval but have not yet obtained the operating licences issued by the Insurance Committee. ALICO's entry into the insurance market has been delayed by a lawsuit and NLIC was approved only last week.

Others waiting for ministry approval to join the life insurance business are Laxmi Life Insurance Company (promoted by the Khetan Group) and Kantipur Life Insurance Company (backed by the Tibrewal Group). By law the Insurance Committee recommends companies for ministry approval and it issues companies their operating licenses. Only 1.6 percent of Nepal's population has life insurance and those seeking coverage are expected to cross the half a million mark by 2005. By then, the Insurance Committee expects premium payments to total Rs 1.19 billion.