Kathmandu: Life insurance companies have yet to pay more than Rs. 6 billion rupees for insurance claims. According to the on-site inspection report of the Insurance Board, 19 life insurance companies have yet to pay claim against 70,200 insurance claims by the end of financial year 2078/79.
Sources related to the Board have informed that more than Rs. 6.54 has yet to be paid to either to the policyholder, nominee or legal heir.
The market leader in terms of business volume, Nepal Life Insurance, is at the first position for non-payment of claims among private-sector led life insurers. According to the data availed to Insurancekhabar.com, Nepal Life has yet to settle the claims again 20,597 insurance claims. It account 29.33 percent based on the total number of outstanding insurance claims in the insurance industry.
Similarly, Nepal Life is in the leading position based on the amount of claim to be paid. It has yet to pay Rs.1.334 million to its policyholders against insurance claims. It stands at first position private sector driven life insurer for non-payment of insurance premium with a 22 percent share in the total claim due.
The state-owned Rastriya Beema Sansthan, which has been insuring the lives of civil servants in particular, is also at the top of the claim payment arrears list. It has has yet to pay Rs. 2 billion 83 crore 67 lakh 38 thousand against 22,200 claims.
National Life Insurance, which is in the third position on the basis of the amount remaining for claim payment, has Rs. 94 crore 98 lakh 27 thousand to pay against 11,129 insurance claims. Met Life(ALICO) has yet to pay Rs. 435 million 61 thousand against 9,061 insurance claims. Met Life is ranked fourth among life insurers in terms of outstanding claim amount.
Similarly, LIC Nepal, one of the old life insurance companies, has yet to pay Rs. 228.7 million againt 5,864 insurance claims. LIC Nepal is at the fifth position based on the outstanding claim amount to be paid.