Life Insurance Companies are surviving through Term Insurance only which is made mandatory by Government, Then what is the actual condition?
Kathmandu: Life insurance companies are running their business through term life insurance policies mandated by the government. Currently operating life insurance companies have sold the highest number of term insurance policies in the month of October/November. This insurance policy is being sold the most due to the dire economic situation of the country and the increasing tendency of the common people to go abroad in search of work and study.
Life insurance companies have sold more than 10 Million insurance articles till mid of November of the current fiscal year (2023 A.D). According to the financial statement published by the Nepal Insurance Authority up to the mid of November of the current year, life insurance companies have sold 13 million 719 thousand 725 insurance policies. The companies sold term, advance payment, converted term, child related, foreign employment term, life, term life insurance policies etc.
According to the details, life insurance companies have sold the most term life insurance policies. Companies have sold 3 million 992 thousand 813 insurance policies till this period. Among them Bagmati province has the highest policy and Karnali province has the lowest policy.
Similarly, short term life insurance policy is in the second position. Life insurance companies have sold 3 million 650 thousand 806 insurance policies till the mid of November. People with low income can also buy this insurance policy. This insurance policy is also the most popular in Bagmati province. In addition, 2 million 112 thousand 348 term life insurance policies are maintained in various provinces. This insurance policy is also found to be done the most in Bagmati province.
458 thousand in advance payment term life insurance, 530 thousand in converted term life insurance, 977 thousand in term life insurance and 35 thousand 240 in single insurance fee life insurance policy has been found to be done from all the life insurances of Nepal.
Bagmati province has the highest population due to various reasons including the state of the country’s federal capital and commercial center, educational institutions and health sector. As a result, it seems that all the life insurance policies sold by the life insurance companies in this province are the highest.