Kathmandu. About 28 percent of the insurance policies issued by the life insurance company are in the expired condition. Compared to the total number of life insurance policies, the proportion of life insurance is 27.68 percent.
According to the data released by the Nepal Insurance Authority, the current fiscal year 2081. A total of 1,246,301 insurance policies have been issued till mid-April 2018. Of the rs 36.87 billion required to be received from the insured at the time of expiry of the policy, rs 36.87 billion has not been collected in the life insurer’s account.
According to the NRA, out of the 14 large life insurers, the number of active insurance policies stood at 3.255 million as of Mid-April. The number of active insurance policies would have crossed 4.5 million if the insurance policy had been revived.
The insured or his or her entitled person are deprived of the benefits to be received from the policy at the time of the expiry of the policy.
Even after six months (180 days) from the date of payment of renewal fee, if the insured does not pay, such insurance will lapse. In the event of passing away, the insured or entitled person does not receive any benefit other than the surrender value of the policy. Therefore, in order to keep all the benefits of the policy active, the insured should pay the renewal insurance fee regularly.
Insurance Renaissance Campaign
In order to inspire the revival of insurance, life insurers have introduced the facility of up to 100 percent late fee exemption to motivate the insured. Insurers, who started life insurance business in 2074 BS, have announced 50 to 100 percent late fee. Insurers established in 2064 and earlier have also introduced a plan to waive 20 to 100 percent late fee.
Nepal Life Insurance, which has a large number of life insurance policies, has announced a 50 percent late fee discount in the revival of the life insurance policy. Similarly, Asian Life Insurance has announced 25 to 100 percent discount.
LIC Nepal, an Indian joint investment life insurer, which claims to have the lowest proportion of life insurers, has also announced a 20 to 30 percent late fee waiver in the insurance revival. LIC Nepal Fiscal Year 2079. According to the annual report of 80, the number of insured insured is only 3 to 4 percent. On average this number of life insurers seems questionable.
Although there is no definite criterion on how to calculate the insured insured, there is a problem in such data or the actual number has not come to light.
From cashback to bumper gifts on renewal fee payment
Most of the life insurers have announced the delay discount scheme in the hope that renewal insurance will contribute to the increase in total insurance revenue. Apart from this, they have also introduced cash discounts and attractive gift schemes on digital payments to motivate the insured to pay the insurance fee on time.
Connect IPS, e-Sewa and Khalti Digital Wallet have announced a promotional campaign with cash back (cash back) and gift scheme targeting life insurance companies.
Role of life insurer
It is possible to reduce the proportion of life insurance policies only when the life insurer continues to increase the number of new policies and ensures that the new policy does not lapse. For this, life insurance should be sold to suit the saving capacity of the insured and personal needs.
What options can the policy be continued if there is not enough savings for payment of renewal fee? Financial advice should also be provided to the insured at the doorstep in this regard.
It is not possible to reduce the insurance policy to zero. However, it can be kept under control. The life insurer should train every agent and employee to take the subject seriously. It should be taught that the insured should be sold in such a way that it is appropriate, appropriate insurance and insurance fee, without fraud or deception with the insured.
regulatory role
While approving the insurance evaluation report of the insurer, the AUTHORITY had put a condition that the proportion of the insured insured should be reduced. There has been no significant improvement in the insurer’s life insurance ratio even after the AUTHORITY put conditions. NeA had directed to reduce the insurance ratio to 5 percent six years ago. The life expectancy of old life insurers is more than 20 percent.
In the recent past, the condition of reducing the insurance ratio spent in the insurance valuation approved by the AUTHORITY has stopped getting priority. Instead, it has been found that the AUTHORITY has accepted the insurance evaluation report with conditions for the provision of minimum regulatory capital and adequate risk-based capital and future bonus.
