Shikhar Insurance Collected Highest Premium of Rs. 2.65 Arba for the 6 Months of FY 79/80; What is the Status of Other Non-Life Insurance Companies?

When we take a careful look at the numbers of non-life insurance, it seems that this sector has been growing at a steady rate. Nepalese insurance companies are also one of the successful enterprises of Nepal, which are still running the insurance business without suffering heavy losses from the date of establishment until now.

Previously, the business penetration was quite low and was not achieving its full potential but due to the covid-19, it has brought a favorable scenario for the insurance business which can be seen by the increasing numbers.

The insurance companies are competing with each other to increase their premium collection. Through the first six months of the fiscal year 2079/80, non-life insurance companies collected a total premium of Rs 20.08 Arba, out of its 1,395,032 total active insurance policies. 

Shikhar Insurance Company Limited collected the highest premium worth Rs. 2.65 Arba. Likewise, Neco Insurance Limited which has 142,383 insurance policies collected a premium worth Rs. 1.54 Arba as its insurance premium till Poush of F.Y 2079/80. As per the report published by Insurance Authority, Neco Insurance Limited also has the highest number of insurance policies.

On the other hand, the National Insurance Company is the one that earns the lowest insurance fee. The Insurance company has earned only Rs. 49.40 Crore, out of its 15,523 insurance policies during this period. 

Note:- Investors of all 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.