Kathmandu: Oriental Insurance Company’s profit has declined by 60 percent despite significant increase in premium income. The company has earned a profit of Rs. 263 million in the last FY 2077/78 while the profit was Rs. 667.4 million in the previous FY.
The decline in profit has directly affected the dividend of shareholders and bonus of the employee. The company has set aside Rs 37.5 million for employee bonus for the last FY.
The company has earned Rs. 865.8 million by increasing its own premium income by 29.75 percent in the last fiscal year. Similarly, the total premium income has also increased by 16.86 percent to Rs 1.17 billion.
Net claims payments have also increased by 32 percent this year. The company has paid its net claim of Rs. 486.2 million. The company has sold 31,583 policies during the period. The company, which is the branch office of Indian company Oriental Insurance, has no paid up capital. The company has only Rs. 139.8 million in reserves and funds but has managed to deposit Rs. 978.6 million in the insurance fund.
There has also been a significant increase in long-term investment. The company has made a long-term investment of Rs. 1.28 billion.