Kathmandu: The first insurance premium(FIP) income of life insurance companies has decreased in Baisakh as compared to Chaitra. According to the data unveiled by the Insurance Board, the FPI life insurance companies has decreased by 24.49 pc in the month of Baisakh 2079 as compared to Chaitra 2078.
In the month of Baishakh, the companies have earned only Rs 2.25 billion FPI. These same companies had earned the FPI of Rs 2.98 billion in Chaitra.
Lately, life insurance business has been focusing on renewal insurance fees amid liquidity crunch in the banking and financial institutions. Due to lack of investable funds, BFIs are unable to provide adequate loan to the businessmen. As a multiplier effect of the liquidity crunch, the FPI of life insurers too declining gradually.
In the month of Baishakh, the companies have collected more renewal premium income (RPI) than the first premium income(FPI). In the month of Baishakh, most of the life insurance companies have focused on earning RPI. Life insurance companies have collected Rs 5.60 billion in RPI fees in Baisakh.
In the first 10 months of FY 2078/79, life insurance companies have earned Rs. 31.26 billion FPI. Nepal Life Insurance Company(NLIC) has earned Rs. 379 million in FPI in Baisakh. National Life Insurance has earned the FPI of Rs 280 million in the month of Baishakh. LIC Nepal is in the third place has managed to earn the FPI Rs 216.3 million this month.
Citizen Life Insurance Company, in the fourth position, has earned Rs 162.4 million in premiums in Baisakh. Sun Nepal Life earned Rs 143.2 million, Jyoti Life Rs 136 million, Surya Life Rs 116 million, Asian Life Rs 108.2 million, Reliable Nepal Life Rs 108.2 million and Met Life Rs 97.1 million.
Similarly, Union Life has earned the FPI Rs 96.7 million. Reliance Life has earned the FPI Rs 96 million. IME Life has earned the FPI Rs. 62.2 million. Prime Life has earned the FPI Rs. 56.8 million. Prabhu Life has earned FPI of Rs 45.4 million. Rastriya Bima Sansthan has earned the FPI Rs 44.40 million. Similarly, Mahalaxmi Life has earned the FPI of Rs 39.6 million. Guransh Life has earned the FPI Rs. 37.4 million. Sanima Life has earned FPI Rs 34.3 million.