Nepal Life from Life Insurance Sector and Shikhar from Non-Life Insurance Sector Earns the Highest Premium Till Magh; What is the Status of Other Companies?
Wed, Mar 1, 2023 12:21 PM on Latest,
Insurance companies are competing with each other to increase their premium collection. Through the seven month of the fiscal year 2079/80, the life insurance companies collected a total premium of Rs. 83.39 Arba, out of its 14,260,139 total active insurance policies.
As per the report published by Nepal Insurance Authority, Nepal Life Insurance Company Limited (NLIC) single-handedly collected Rs. 21.6 Arba, having an active number of insurance policies of 957,467 as of Magh, 2079.
Similarly, Mahalaxmi Life Insurance Limited generated the least amount of premium i.e Rs. 89.51 crores, owing to its 35,777 active insurance policies.
The highest number of active insurance policies lies with Reliable Nepal Life Insurance Co Ltd, having subscribers 3,651,621 as of Magh 79/80. Despite the enormous number, it was able to generate only Rs. 2.085 Arba as its premium amount.
When we take a careful look at the numbers of non-life insurance, it seems that this sector has been growing at a steady rate. Nepalese insurance companies are also one of the successful enterprises of Nepal, which are still running the insurance business without suffering heavy losses from the date of establishment until now.
Previously, the business penetration was quite low and was not achieving its full potential but due to the covid-19, it has brought a favorable scenario for the insurance business which can be seen by the increasing numbers.
Shikhar Insurance Company Limited from the Non-life inusurance sector collected the highest premium worth Rs. 2.98 Arba. Likewise, Neco Insurance Limited which has 165,143 insurance policies collected a premium worth Rs. 1.75 Arba as its insurance premium till Magh of F.Y 2079/80. As per the report published by Insurance Authority, Neco Insurance Limited also has the highest number of insurance policies.
On the other hand, the National Insurance Company is the one that earns the lowest insurance fee. The Insurance company has earned only Rs. 58.22 Crore, out of its 18,329 insurance policies during this period.
Note:- Investors of all insurance companies should understand the quality of insurance policies is important rather than number of insurance policies. Moreover, these policies might include scheme such as foreign employment insurance policy which provides less net premium so some insurance companies do not prefer such policies. Hence, judging an insurance company based only on number of insurance policies would be absurd.
