Only 5 life insurers got actuarial valuation approved for previous year yet

Kathmandu: The Insurance Board has approved the actuarial valuation of five life insurance companies for the previous Fiscal Year 2076/77. The Board of Insurance Board has simultaneously approved the actuarial valuation of five life insurance companies namely Prime Life Insurance Company(PLI), Reliance Life Insurance Company(RLI), Jyoti Life Insurance Company(JLI), Met Life Insurance Company(Met-ALICO) and Mahalakshmi Life Insurance Company(MLI) .

These companies have published their policy holders bonus and shareholder’s dividend after the approval of the actuarial valuation. First of all, Prime Life has announced the bonus rate to be received by the insured and the dividend to be received by the shareholders. Prime Life has announced a 15 percent bonus share and a 0.87 percent cash dividend for tax purposes on bonus shares.

Similarly, other companies including Jyoti are also preparing to declare dividend. Met Life has not yet determined the policy bonus rate to be received by the insured. Jyoti Life and Mahalakshmi Life have already announced it. If Jyoti and Reliance declare dividends, they will be the first of the new companies to declare dividends.

Two years after the end of the FY, the process of declaring dividends of life insurance companies has started. Another 14 life insurance companies have yet to get approval for the actual value of the FY 2076/77. Rest of the life insurance companies have started the process for approval of actuarial valuation.

The insured has not been able to get the bonus on time as the companies have not been able to make get actuary valuations done on time. If the policy of the insured matures during this period, they get the claim on the basis of the bonus rate of two years ago. On the other hand, even if the insured dies during this period, they will not be able to get a realistic bonus.

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