Non-life Insurers allocate Rs.73.39 mn for Employees Bonus in FY 78/79

Kathmandu. Non-life insurance companies are going to give a bonus of Rs. 73.39 million rupees to the employees from the profit of the last financial year. According to the profit shown on unaudited 4th quarter financial report, the companies have already set aside the amount for the employees.

The employees of non-life insurers receive bonus early than the life insurers due to the absence of actuarial valuation. Since, life insurers have to bear long term liabilities to their policyholders, the actual profit is realized only after the completion of actuarial valuation. Generally, the annual general meeting of non-life insurance companies is completed within 6 to 10 months of the completion of each financial year. But the life insurers are seen unable to conduct AGM within one year after the completion of the fiscal year.

In the last financial year, Neco Insurance Company has set aside Rs. 80 million for its employees which is the highest among the 20 non-life insurers. Neco had given Rs. 72 million previous financial year. The second highest bonus amount is from Sagarmatha Insurance. It’s employees are expected to get Rs. 63.6 million in bonus.

At the third place, Shikhar Insurance has allocated Rs. 58.7 million for employees’ bonus. The company had given Rs. 50.7 million in the previous financial year. Other companies respectively have Rs. 53.9 million of Siddharth Insurance , Rs. 52.7 million of Nepal Insurance, Rs. 51.2 million of Premier Insurance,Rs. 498 million of Rastriya Beema Company. The Himalayan Everest Insurance has allocated Rs.40.19 million for the employees. Rs. 71.4 million was distributed in the last fiscal year.

According to the Bonus Act, insurance companies must set aside 10 percent of profits for employees.

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