It is claimed that the income of the citizens has decreased due to the failure of economic activities and its impact has also affected the insurance sector
In the 10 months of the current financial year, about 88,500 have left the insurance policy. Since the economy has not become viable, the income of the citizens has decreased due to the economic activities being reduced. Experts say that due to its impact, about 88,500 people gave up their insurance in the last 10 months.
Nepal Insurance Authority, the regulatory body of the insurance sector, has informed that 88 thousand 635 people have given up their insurance policies between July and April of the current financial year. In the meantime, they have realized 12 billion 27 billion 23 lakh rupees when leaving the insurance. As of May 2081/82, 89 lakh 77 people left the insurance. The insured received 10 billion 98 crore 71 lakh rupees from that insurance policy. The authority said that although the number of insurance cancellations decreased by 0.50 percent during the same period of the current financial year compared to 10 months of the last financial year, the amount to be brought back increased by 11.70 percent.
In the 10 months of the current financial year, 12 lakh 54 thousand 478 insurance policies have not been renewed i.e. lapsed . The amount for that insurance is 36 billion 46 million rupees. While 11 lakh 23 thousand 742 insurance policies have been issued up to 10 months of the last financial year, the amount of those insurance policies was 30 billion 98 crore rupees.
The effect of the laxity seen in the economy has also affected the insurance sector, and there has been a tendency to drop out of insurance and not to renew it, said the president of Nepal Life Insurance Association, Satchiraj Paudel. "Especially with the relaxation in the economy, there was a lot of surrendering and lapses," he said. Paudel said that as this has reduced the income of citizens, it has affected insurance as well as other sectors. In the last few months, the number of people leaving the insurance policy midway and not renewing it is decreasing, he said.
By April of the current financial year, 5646 thousand 909 insurance policies have been issued by Life and Life Insurance Company. According to the authority's data, 26 lakh 66 thousand 886 insurance policies were issued by non-life and non-life insurance companies during that period. Compared to the same period last year, the number of issued life insurance policies and the number of non-life insurance policies have increased by 1.86 percent and 7.59 percent in the 10 months of the current financial year. In total, there are 1 crore 53 lakh 6 thousand 993 active life insurance policies till April of this financial year. Compared to the same period last year, it has increased by 9.68 percent, according to the monthly report of the authority.
The total insurance fee has increased by 14.3 percent in the same period of the current financial year compared to May of last year . 1 trillion 54 billion 53 crore insurance fee was collected till Baisakh of last year and it has reached 1 trillion 76 billion 21 crore rupees during the same period of this year . According to this, the insurance fee of life and small life insurance has increased by 15.55 percent to 1 trillion 40 billion 35 million. In the same period, the insurance fee of non-life and short-term non-life insurance increased by 8.46 percent to 35.86 billion rupees.
Compared to 10 months of last year, the number of life insurance claim payments and the amount of claim payment has decreased by 3.38 percent during the same period of the current financial year . "The number of claims paid by the life insurance companies till April of the current financial year is 218,951, out of which Rs. 48.95 billion have been paid," the authority said, "compared to April last year, there seems to be a decrease in the number and amount of claims paid." This fee is the lowest in Karnali. On the basis of insurance fees, after Bagmati, the provinces that collect the most insurance fees are Lumbini, Koshi, Gandaki, Madhesh and Sudurpaschim provinces respectively.
Since the total number of issued insurance policies is more in Bagmati province, experts say that insurance fee collection is also more in the same province . 66.17 percent of the total insurance issued till last Baisakh is in Bagmati province only. Experts say that this confirms that the insurance service has not yet been decentralized.
