Life Insurance Companies Collect an Impressive Premium of Rs. 71.65 Arba Till Six Months of FY 79/80

Insurance companies are competing with each other to increase their premium collection. Through the six months of the fiscal year 2079/80, the life insurance companies collected a total premium of Rs. 71.65 Arba, out of its 14,109,150 total active insurance policies.

As per the report published by Nepal Insurance Authority, Nepal Life Insurance Company Limited single-handedly collected Rs. 18.63 Arba, having an active number of insurance policies of 940,249 as of Poush, 2079.

Similarly, Mahalaxmi Life Insurance Limited generated the least amount of premium i.e Rs. 75 crores, owing to its 35,492 active insurance policies.

Note: Surya Life Insurance Company Limited (SLICL) and Jyoti Life Insurance Company Limited (JLI) received the final approval for the merger from the Insurance Authority on Mangsir 2 and from the Securities Board on Mangsir 25 and the life insurance companies conducted their integrated business from, Poush 7, 2079. The companies merged in the name of Suryajyoti Life Insurance Company Limited (SJLIC). Likewise, the premium collected by SJLIC is calculated only after their joint integrated transaction, i.e 7 Poush, 2079.

On the other hand, the highest number of active insurance policies lies with Reliable Nepal Life Insurance Co Ltd, having subscribers of 3,676,041 as of Poush 79/80. Despite the enormous number, it was able to generate only Rs. 1.78 Arba as its premium amount.

Note:- Investors of all life insurance companies should understand the quality of insurance policies is important rather than number of insurance policies. Moreover, these policies might include scheme such as foreign employment insurance policy which provides less net premium so some insurance companies do not prefer such policies. Hence, judging an insurance company based only on number of insurance policies would be absurd.