Insurance companies are competing with each other to increase their premium collection. Through the five months of the fiscal year 2079/80, the life insurance companies collected a total premium of Rs. 59.5 Arba, out of its 13,986,505 total active insurance policies.
As per the report published by Nepal Insurance Authority, Nepal Life Insurance Company Limited single-handedly collected Rs. 15.62 Arba, having an active number of insurance policies of 928,406 as of Mangsir, 2079.
Similarly, Mahalaxmi Life Insurance Limited generated the least amount of premium i.e Rs. 62.03 crores, owing to its 35,920 active insurance policies.
The highest number of active insurance policies lies with Reliable Nepal Life Insurance Co Ltd, having subscribers of 3,834,844 as of Mangsir 79/80. Despite the enormous number, it was able to generate only Rs. 1.43 Arba as its premium amount.
Note:- Investors of all life insurance companies should understand the quality of insurance policies is more important rather than the number of insurance policies. Moreover, these policies might include schemes 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 a number of insurance policies would be absurd.