Kathmandu. New life insurance companies are challenging the old company in terms of paying claims. Most of the new life insurers have actively paid their claims as the old life insurance companies Nepal Life, LIC Nepal, National, Asian Life, Prime Life and Guransh Life Insurance have been late in paying their claims.
As per the unaudited financial statement of fourth quarter of FY 2077/78, Reliable Nepal Life, IME Life, Reliance Life, Mahalakshmi Life, Sun Nepal and Sanima Life Insurance have zero unpaid claim. Similarly, out of the nine old life insurers, only Surya Life Insurance has settled all the claims in the last fiscal year. The unpaid claim provisioning of these seven companies are nil.
Nepal Life Insurance has made provisioning of Rs. 2.55 billion against unpaid claim out of which the unpaid claim for death claim amounts Rs. 187.2 million. The unpaid death claim of Nepal Life was Rs. 63 million in FY 2076/77. The accumulated unpaid death claim has increased by about 200 percent.
According to the Insurance Claims Payment Guideline 2076, out of the unpaid claims received throughout the year, 115 percent of the claim amount should be provisioned at the end of each FY.
LIC Nepal is yet to pay the claim of Rs. 257.23 million. In the previous fiscal year, unpaid claim was 0Rs. 202.81 million.
According to the fourth quarterly report published by National Life Insurance. A total of Rs. 72.23 million is unpaid by the end of the last FY. In the previous Fiscal Year, unpaid claim was Rs. 381.1 million.
MetLife Insurance has yet to pay Rs. 831.19 million in claims. In the previous Fiscal Year, the unpaid claim was Rs. 701.1 million.
Similarly, Asian Life Insurance has to pay a claim of Rs. 48 million. In the previous FY, the unpaid claim was Rs. 21.7 million only.
The old life insurance companies LIC Nepal, National Life, Nepal Life, Met Life, Rastriya Bima Sansthan have mentioned the total sum of death claims, partial payments, advance payments and maturity claims in their financial statements as unpaid claim. Other life insurers have mentioned only the amount of unpaid death claim
Although the new life insurance companies appear to be weaker than the old ones in terms of life insurance funds and bonus rates due to the short duration of their operations, they are strong in terms of claims settlement.
The new life insurers have the opportunity to present themselves as a company that pays 100 percent of the claims. If the new life insurers highlight the aspect of claim payment to the insured, the old companies will also be under pressure to expedite the claim.