Life Insurance Policy Surrenders Exceed Eight Billion Rupees In Second-Quarter of Current FY

Kathmandu – Life insurance policy surrenders in Nepal have crossed eight billion rupees by the end of the Magh month (mid-February), reflecting a significant trend of policyholders opting out before the completion of their coverage period. According to data from the Nepal Insurance Authority, a total of 62,523 insurance policies worth Rs 8.59 billion have been surrendered through various life insurance companies.

Among the insurers, LIC Nepal recorded the highest number of policy surrenders, with 15,365 policies worth Rs 2.59 billion being terminated. Following closely behind, Nepal Life Insurance saw 14,025 policies surrendered, amounting to Rs 2.36 billion. Meanwhile, government-owned Rastriya Jeevan Beema Company witnessed policy surrenders totaling Rs 786 million by the end of January.

Other companies have also reported notable figures in surrendered policies. National Life Insurance recorded policy terminations worth Rs 551.5 million, while Asian Life Insurance saw Rs 541.9 million in surrenders. Similarly, SuryaJyoti Life Insurance had policies worth Rs 469.9 million surrendered, Himalayan Life Insurance reported Rs 378.1 million, and MetLife experienced surrenders amounting to Rs 241.2 million.

Among other insurers, Sanima Reliance Life Insurance saw policy surrenders worth Rs 153.6 million, IME Life Insurance recorded Rs 123.3 million, Citizen Life Insurance had Rs 149.1 million, and Prabhu Mahalakshmi Life Insurance reported Rs 124.6 million. Additionally, Reliable Nepal Life Insurance recorded Rs 64.3 million in surrenders, while Sun Nepal Life Insurance saw Rs 45.5 million worth of policies being terminated.

The Insurance Authority has noted a rising trend in policy surrenders, indicating that more policyholders are choosing to exit their life insurance plans before the completion of the specified period.