Kathmandu: As the profits of life insurance companies decline this year, the bonus amount of employees will also decrease. Life insurance company’s profits have fallen by 20 percent this year. The rise in operating and management expenses has led to a sharp decline in companies’ profits.
Life insurance companies have released bonus of Rs. 222.7 million to the employees from the profit of the first six months of the current fiscal year. The companies had disbursed Rs. 288 million in the same period last year. As a rule, companies are required to pay a bonus of 10 percent of their profits.
The number of employees in the insurance company has been steadily increasing for the past three years. As the number of employees increases, so does their share in bonus too. On the other hand, due to the decline in profits, the employees of life insurance companies do not seem to get good bonuses this year.
At present, the unaudited financial statements made public by the insurance company do not include the income earned from the life insurance fund to the profit. It is included after the preparation and approval of actuarial valuation. Therefore, the amount of bonus allocated for the employees too may increase.
According to the current unaudited financial statements, the highest bonus this year, Nepal Life has allocated Rs. 22 million for its employees. Similarly, Prime Life has contributed Rs. 19.3 million, National Life Rs. 18.2 million, Reliable Nepal Rs. 18 million, Surya Life Rs. 17.4 million, Asian Life Rs. 16 million, Jyoti Life Rs 14.8 million and Citizen Life Rs. 12.2 million, Met Life Rs. 12.2 million, Life Insurance Corporation Rs. 12 million, Sanima Life Rs.10.4 million. The profits of other life insurance companies is less than Rs. 10 million till second quarter of current Fiscal year 2078/79.
