Kathmandu: Life insurance companies have allocated a total of Rs. 341.5 million for employees’ bonuses from the first two quarters of the current financial year 2079-80. Such amount was Rs. 187.1 million in the same period of last FY 2078-79.
In the second quarter of the current FY, life insurance companies earned a net profit of Rs. 2.95 billion against Rs. 1.62 billion in the last FY. The net profits of the life insurers surged amid low provisioning against the possible loss from the investment in the secondary market and the interest income from double digits interest rates.
According to Bonus Act, employees receive a bonus of 10 percent against the net profit earned by a company.
The actual profits of a life insurance company are subject to actuarial valuation.