Kathmandu: Dispute has been emerged among life insurance companies with the issue of the profit sharing from the Foreign Employment Insurance Pool(FEIP).
The coalition of Life Insurance Companies formed a FEIP to share the risk and profit for Foreign Employment Insurance. They had a agreement to share the proceeds of insurance premium on a stipulated ratio till the end of FY 2078/79 and making it equal from next FY.
But Sun Nepal Life Insurance Company Limited has put forward its stand and rejected the provision of sharing common agreement. It has claimed that the profit sharing ratio is unscientific and impractical. With the objection, the company has withheld Rs. 35 crore of the insurance pool.
The company had written a letter on October 6,2021 to the Nepal Re-insurance Company(Nepal Re), and rejected the agreement of profit sharing. The company has written in the letter, “Since the share of business proceeds made effective from 1st Magh 2077, has not been accepted by this company, we humbly request you not to take any further action as the discussion is going on in the Insurance Board(IB).”
Chief Executive Officer of Sun Nepal, Raj Kumar Aryal, has requested Insurance Board to demolish the risk and profit sharing arrangement of Pool immediately, claiming that the management of the Pool is not guided by any law or regulations.
As per the common agreement From mid July 2021 (Sawan 1, 2079) onwards, all insurance companies will have to bear the liabilities and insurance premium income equally. But Sun Nepal Life has not signed the agreement. Met Life and LIC Nepal are included in the Foreign Employment Insurance Pool.
Rajuraman Poudel, executive director of the IB said that the board is doing homework to issue guidelines to settle the issue of FEIP.