Life Insurers allocate Rs.364 million for employees bonus

Kathmandu: Life insurance companies have provisioned a bonus of Rs 364.5 million from the profits earned in the third quarter.

According to the Bonus Act, the employees of the company receive bonus of 10 percent of profits. Since, the profit allocation is based on the unaudited quarterly financial report, the actual bonus for the employees may be vary based on the actuarial valuation and final audit report.

However, in the case of employees working in establishments owned by the Government of Nepal, the officer level employees will receive a bonus amount equal to three months of the basic salary. Similarly, the assistant level employees will receive a bonus amount equal to four months of the basic salary. Due to this arrangement, Rastriya Bima Sansthan has allocated a bonus of only Rs 2 million for the employees. On the other hand, the company has not been able to hold a general meeting for the last 10 years.

Of the 19 life insurance companies, Nepal Life has provisioned a bonus of Rs 65.11 million for its employees. Similarly, National Life has allocated Rs 38.9 million in the second place. Surya Life Rs 32.3 million, Met Life Rs 32 million, Prime Life Rs 25.4 million, Life Insurance Corporation Rs 24 million, Asian Life Rs 22 million and Gurans Life Rs 10 million respectively.

Among the new life insurance companies, Reliable Nepal Life Insurance has provisioned a bonus of Rs 22 million. Similarly, Citizen Life has also set aside Rs 16.1 million for bonus. The remaining new life insurance companies are Prabhu Life at Rs 1.53 crore, Jyoti Life at Rs 1.34 crore, Sun Nepal at Rs 1.6 crore, Sanima Life at Rs 1.4 crore, IME at Rs 10 million, Union Life at Rs 82 lakh and Mahalakshmi Life at Rs. Rs 7.4 million and Reliance Life Rs 7.3 million for bonus.

This statement is as provided by Beema Samiti. Although the amount is set aside for bonuses for employees in the third quarter, it may increase further in the fourth quarter.

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