Kathmandu. The remaining amount of life insurance companies has increased. It has been observed that the remaining amount of the insurance policy is almost tripled than the amount that comes out of the companies through surrender.
Due to various reasons including increasing financial needs, financial pressure, lack of knowledge of insurance, the surrender amount of insurance and the remaining amount of the outstanding amount of the insured are increasing.
Nepal Insurance Authority (NEA) has said that rs 13.54 billion has been withdrawn from life insurance companies till May 11 of the current fiscal year. This amount of insurance is roughly three times that of the amount that comes out of the surrender.
A total of 98,415 insurance policies have been surrendered to the companies till May of the current fiscal year. A total of Rs 13.54 billion has been withdrawn from the companies through the surrender of these insurance policies.
In the previous fiscal year, rs 12.20 billion had been withdrawn from the companies through the surrender of 112 policies. The surrender amount has increased by 10.97 percent in the review period as compared to the previous year.
Similarly, both the number and amount of insurance policies have increased. According to the NRA data, 1,243,769 insurance policies have been insured till May of the current fiscal year. The companies are yet to recover Rs 36.51 billion for the insurance policies.
As of May last year, the company had to recover Rs 33.32 billion from 1,143,478 insurance policies. Compared to the previous year, the number and amount of insurance policies have increased by 8.77 percent and 10.54 percent respectively.
