Kathmandu: The Professional Insurance Agents’ Association’s Nepal Life chapter has opposed the hike in the policy loan interest rate. Nepal Life Insurance has recently hiked by 20 percent point to 12 percent from 10 percent per annum. The interest is payable semi-annually.
Issuing a objection note, the PIAA Nepal Life chapter has mentioned that the hike in interest rate is against the interest of the policyholders. While including the load of the semi-annual interest amount, the effective interest rate for policyholder’s loan equals to 12.36 percent. The life insurers have increased the policyholder’s loan interest rate amid the surge in the fixed deposit’s interest rate offered by the Bank and Financial Institutions(BFIs).
The Association has also object over the 10 days’ short period notice for interest waiver scheme offered to the policyholders for policy renewals.
