Kathmandu. In the recent past, Indian insurance companies have started closing their branches abroad.
Oriental Insurance Company has been forced to close its dubai office after 64 years as it failed to pay the amount demanded by the insurance regulator.
GIC Relay has also closed its dubai office over the issue. New India Assurance has also closed its offices in Hong Kong and the Philippines.
Oriental has not been able to issue new insurance policies after the UAE central bank of Dubai suspended the motor insurance business of Insurance Oriental Insurance Company.
In 2024, the regulator had directed Oriental, which has a total insurance business of Rs 296 crore in Dubai, to furnish a bank guarantee of $100 million. The license has been suspended after it failed to deposit the dues within the stipulated time.
Despite the suspension of the license, Oriental Insurance will continue to serve the old insurance policy till the liability remains, but it will not be able to sell the new insurance policy.
Earlier, Indian state-owned reinsurer GIC Re (GIC Re) had shifted its Dubai office to the International Financial Centre in Gujarat.
Apart from this, New India Assurance has also closed its offices in Hong Kong and the Philippines.
Oriental Insurance started its service in 1960 by establishing an office in Dubai. In the era of trucial states, long before the uae was formed in 1971, it became one of the first insurers in the region. Oriental Insurance also has a branch office in Kuwait.
