सिंहदरबार संवाददाता
Kathmandu. Life Insurance Corporation (Nepal) Limited (LIC Nepal) is gradually losing the trust of the insured. The delay in claim payment, the declining morale of the agents and the incompetence of the leadership are the reasons for the decrease in the trust of the insured towards LIC Nepal.
To understand the fact that LIC Nepal is currently going through the most difficult situation in its history, one should look at the first insurance premium and surrender figures collected by the company.
The company has collected a total of Rs 1.27 billion in insurance premiums by mid-Mangsir of the current fiscal year. First insurance premiums are a new insurance business for life insurance companies and that also shows the company’s business growth. But in a company that has been able to collect first insurance of Rs 1.27 billion in five months, the surrender figure has reached Rs 1.93 billion. By the end of Mangsir, 11,793 insureds had left LIC Nepal. That is, these are the insureds who surrendered their insurance policies with LIC Nepal and withdrew their money.
With the number of people leaving rather than getting insurance from LIC, questions have also started to arise about the company’s institutional governance. If we look at the business cycle of life insurance companies, the company’s business seems to have decreased. That is, the size of policy surrenders has increased by 188.26 percent compared to the addition of new insurance in LIC Nepal.
LIC Nepal’s Information Officer Sudarshan Giri said that due to the slowdown in economic activity, new business growth has been low and that is natural.
He told Singha Durbar – ‘The problem has also arisen due to the economic crisis, insuring is also according to the rules and taking is also according to the insurance rules. The insured must withdraw money according to the rules, the insured must give his money when he withdraws it.’
Why has insurance surrender increased? ?
Recently, the number of insurance policy surrenders has increased. According to the data of the Insurance Authority, in the first five months of the current fiscal year 2081/082, 45,060 insureds of 14 life insurance companies have surrendered insurance worth Rs 6.10 billion 7.642 billion.
An employee of the authority told Singha Durbar, “Insurance surrender can be a big issue. Even if agents entice (induce) people who are unable to buy insurance to buy, they will surrender.” He added, “Insurance is a savings according to which money can be returned after a certain period of time, surrender occurs when the insured cannot regularize the insurance due to weak income sources. Surrender is not a good thing for any company. If surrender occurs, the company’s business will not be regular. When companies’ business is regular, the cutoff occurs in the middle of a 20-year planned product, and the business fund is lost. The number of insurance surrenders has increased due to the fact that agents have moved forward on a commission basis. Companies advertise various schemes and everyone does it out of greed, but later the company cannot provide the facilities advertised, which is also why surrenders have increased.’
Which company has how many insurance surrenders? ?
The policy surrenders of life insurance companies have increased until the end of the fiscal year. Life Insurance Corporation Nepal (LIC) has been the most surrendered policy. According to the Nepal Insurance Authority, LIC has surrendered 11,793 insurance policies worth Rs 1.93 billion.
Similarly, National Life Insurance Company has surrendered 5,410 insurance policies worth Rs 513.2 million. Met Life has surrendered 1,516 insurance policies worth Rs 172.3 million, while Sanima Reliance Insurance has surrendered 787 policies worth Rs 109.5 million.
Similarly, Asian Life Insurance has surrendered 3,752 policies worth Rs 401.4 million, while National Life Insurance has surrendered 2,541 policies worth Rs 371.1 million.
Nepal Life has surrendered 10,317 policies worth Rs 1.6796 billion. Suryajyoti Life Insurance has closed 2,488 policies worth Rs 326.4 million. Himalayan Life has surrendered 3,033 policies worth Rs 283.3 million, while IME Life Insurance has surrendered 763 policies worth Rs 84.3 million.
Citizen Life Insurance has surrendered 1,188 policies worth Rs 80 million, while Prabhu Mahalaxmi Life has surrendered 549 policies worth Rs 78 million. Reliable Life Insurance has surrendered 788 policies worth Rs 44.6 million.
In addition, Sun Nepal Life Insurance has surrendered 297 policies worth Rs 29.4 million. As of Mangsir of the last fiscal year 2079/080, 44,744 insureds had surrendered policies worth Rs 5.47 billion.
How much is the insurance premium of 14 insurance companies?
Life insurance companies have earned a total insurance premium of more than 65 billion rupees in the period up to Mangsir of the current fiscal year. According to the financial statements made public by the Nepal Insurance Authority on Tuesday, the 14 life insurance companies in operation have earned a total insurance premium of 65 billion 74 crore 18 lakh rupees in five months.
Nepal Life Insurance Company has collected the highest insurance premium in the five months. The company has earned insurance premium of Rs 18.76 billion 48 million in the five months. Similarly, National Life Insurance is the second largest insurance premium collector. The company has collected a total insurance premium of Rs 7.98 billion 68 million.
Similarly, Life Insurance Corporation Nepal has collected Rs 7.66 billion 36 million, while Himalayan Life Insurance has collected Rs 6.79 billion 14 million. Surya Jyoti Life Insurance has collected Rs 3.99 billion 68 million, while Asian Life Insurance has earned Rs 3.36 billion 4 million.
Similarly, Citizen Life Insurance has earned Rs 2.65 billion 54 million, Sanima Reliance Life Insurance Rs 2.59 billion 75 million, Met Life Insurance Rs 2.33 billion 20 million, and National Life Insurance Rs 2.25 billion 81 million.
In the five months, the total insurance premium of Prabhu Mahalaxmi Life Insurance was Rs 1.942 billion, Reliable Nepal Life Insurance was Rs 1.921 billion, IME Life Insurance was Rs 1.8949 billion, and Sun Nepal Life Insurance was Rs 1.5756 billion, according to data released by the Insurance Authority.
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