Kathmandu: Policyholders have withdrawn a total of NPR 11.91 billion from policy surrender within first eleven months of current financial year(FY). According to Nepal Insurance Authority, 14 life insurers have accepted a total of 98,127 policy for surrender value payment during the evaluation period.
Policyholders have withdrawn a total of NPR 1215.6 million in the eleventh month (Jestha) of current FY 2080-81. According to Authority, policyholders have submitted a total of 10,935 policies to the life insurers and withdrawn that amount from Life Fund.
During last FY 2079-80, a total of 9,733 insurance policies were surrendered by policyholder in the month of Jestha only. The life insurers were compelled to pay a total of NPR 1030 million from Life Fund against such huge number of policy surrender.
In the first 11 months of the last FY 2079-80, the life assured surrendered a total of 92,381 insurance policies with a total surrender value of NPR 12.38 billion.
Nepal Life Insurance Company(NLIC) has faced highest volume of policy surrender both in terms of policy count and surrender value payment. According to the Authority, the insurer has paid a total of NPR 359.7 million against the surrender of 2,209 policies. NLIC alone occupies 29.59 percent in terms of surrender value payment to the policyholders.
Accordingly, LIC Nepal has paid a total of NPR Rs. 3549 million against the closure of 3,463 policies. It holds 29.20 percent of the total surrender value paid by the life insurers in the month of Jestha alone.
