Kathmandu. The amount of claim payment in the life insurance sector of Nepal is increasing every year. This has helped win the trust of the insured.
According to the latest annual report of Nepal Insurance Authority, the claim payment by the insurers to the insured has increased significantly as compared to the previous years.
Life insurer has paid 91.29% of the claim payable. It means 2081. At the end of ’82, only less than 9% of all payable claim funds are still to be paid. This is a very positive message for consumer confidence.
Record in Claim Payment
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According to the data published in the annual report of the NRA, the fiscal year 2081. Out of the total 82 life insurance companies, 14 life insurance companies have paid a total of Rs 78.72 billion in claims except micro insurance. This was the previous fiscal year 2080. This is about 20 percent more than the Rs 65.46 billion in ’81.
Analyzing the three-year trend, the fiscal year 2079. The total claim payment has increased by nearly 30 per cent to Rs 78.72 billion in two years from Rs 60.24 billion in 2018-19. The increase in the amount of claim paid by the insurers is considered positive. This helps to increase the confidence of the insured.
Despite the huge amount of payment, the insurers are yet to pay Rs 7.50 billion. This amount has increased by almost 50 percent compared to Rs 511.86 crore in the previous year. Three years ago, 2079. In 2018, the amount was Rs 5.31 billion. This indicates that the burden of payment on insurers is increasing and the burden of claim settlement is increasing.
Older companies
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Large and old life insurance companies have been very efficient in paying claims and their 3-year trend is also stable.
The company’s payment efficiency has been excellent, having the largest volume of claim payments. 2079. It paid Rs 15.69 billion in 2081. It has paid Rs 19.19 billion in the year 2018-19. That’s an increase of about 22 percent. The amount to be paid is also 2079. It has increased from Rs 1.38 billion to Rs 2.51 billion in 2018. The company has already paid 90% of its total claim liabilities. Only 10 percent is yet to be paid.
National Life TAG_CLOSE_span_46, another big company, has paid Rs 11.07 billion and left only Rs 2.02 billion in arrears.TAG_OPEN_span_46 Payments in its 3-year trend 2079. The number of claims increased by 32 per cent from Rs 8.38 billion to Rs 2.02 billion in FY80, while the remaining claims rose to Rs 2.02 billion from Rs 141 million. Its payment efficiency is 84.5 percent.
The fact that the old companies have been able to keep the remaining claim percentage in the range of 10 to 15 percent despite carrying a large amount of money is a testimony to their operational efficiency and honesty towards the insured.
Arc
Statistics show that the pressure on merger companies is increasing. Since the merger has become a single entity, the total amount of claims paid to them has increased and they have been increasing their efficiency over a 3-year trend.
Himalayan Life: The company’s claim payment has increased by Rs 97.33 billion after the merger of Prime, Union Life and Gurans Life.TAG_OPEN_span_44 2079. It paid Rs 2.02 billion in Rs 80 crore and paid more than three times in two years. However, the outstanding claim amount is much lower than the payment of Rs 14.30 crore. Which is excellent. 2079. The government has already paid 98 per cent of the total claim liability, although it has increased slightly this year. Which is the highest efficiency among life insurers.
Surya Jyoti Life: Surya Jyoti Life has also increased its payment by Rs 3.69 billion and the remaining claim of Rs 94.9 million has increased by more than double from Rs 42.0 million in the previous year. But, 2079. Payments have increased by almost 80 per cent compared to Rs 2.05 billion paid in Rs 80 crore and Rs 67.4 million in the balance, while the remaining claims have increased by only 40 per cent. This is a sign of improved operational efficiency.
Although the merger has increased the capital and capacity of the companies, it is natural that the pressure on claim payment will increase for some time due to the challenges of consolidating the data of the insured of different companies and the operation process.
Editorial Note
This news was published by the Insurance Authority of Nepal for the fiscal year 2081. The claim published in the annual report of the year 82 is based on the payment of the claim and the amount of the remaining claim. The authority does not publish the number of claims, the number of claims paid and the number of payments due. As a result, it is not possible to ascertain which company is more qualified on the basis of claim settlement.
Because even if a company pays a large amount of claims, if the process of a single big claim, such as Rs 10 crore, is complicated, then its efficiency in terms of amount can be low. On the other hand, a company that pays less may have settled a lot of insured. Therefore, it is advisable for the insured to consider this data as an indicator before choosing any insurance company.
