Kathmandu, Feb 11: The Supreme Court has issued a show cause notice in response to a case filed against the proposed approval to be given by the insurance committee to the life insurance company of the united states for opening a branch in Nepal for selling life insurance policies.

The show cause notice was issued by the single bench of Chief Justice Keshav Prasad Upadhyaya.

Only two companies are now allowed to sell life insurance policies in Nepal at present  and two other  Nepalese companies are seeking similar license. It is  against this background that approval for the American company is being sought.

The case has been brought by advocate Bharat Mani Gautam who contends that the Nepalese insurance industry should be given priority while seeking to bring in  foreign capital and know-how. Advocates Dinesh Tripathi and Motiraj Gautam have pleaded on behalf of the writ petitioner.