Kathmandu: Life insurance industry has faced a large number of policy surrender in the last financial year 2080-81. According to Nepal Insurance Authority, the insurance industry regulator, above 1,13,976 policies has been surrendered by the policyholders.
Life insurers were forced to pay a total of NPR 14.501 billion during the same period.
A policy surrender leads to premature payment to the policyholders after deduction of agency commission, reinsurance fee, regulatory fee, insurers operating expenses etc.
Nepal Life Insurance(NLIC) faced highest volume of policy surrender in terms of count and surrender value payment. According to NIA, NLIC accepted a total of 28,627 policies during the evaluation period. The policyholders withdraw NPR 4.413 billion against the surrender value. It accounts 30.44 percent of the total surrender value paid by the 14 life insurers in the last FY.
