Kathmandu: Jeewan Bimak Sangh Nepal has urged the Minister of Finance to review the term deposits interest rate for institutional depositors like life insurance companies.
The representative of the apex body of the life insurers, Jebisan Nepal, made such a request with the Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel on Wednesday. The Jebisan has said that higher interest rates equal to the individual depositors would benefit the millions of policyholders resulting in better bonus rates.
With the majority of the total fund of life insurance collected from the rural and suburban areas, the higher interest rate on term deposits of life insurers is justifying. The central bank, Nepal Rastra Bank, has instructed all the bank and financial institutions to offer 10 percent point lower interest rate to the institutional depositors than the individual depositors.
Currently, the term deposit interest rate for an individual is 11 percent while for the institutional deposit its only 10 percent p.a.
The Jebisan has also reminded Minister Paudel about its earlier demand to increase the limit of tax exemption for life insurance by an individual.
Poshak Raj Paudel, the president of the association, Nirmal Kaji Shrestha former president, Prakash Bikram Khatri general secretary, and Dinesh Lal Shrestha treasurer were in the meeting with the minister.