September 4: Despite the coronavirus pandemic, life insurance companies have collected above average premium in July/August.

The average monthly premium collection of all 19 insurance companies of Nepal is Rs 7.75 billion.

The preliminary data of Insurance Board Nepal shows that the total premium collection in July/August was above average. The total amount collected by the insurance companies during the review month stood at Rs 10.14 billion.

Nepal Life Insurance Company is ahead in terms of premium collection. The company collected Rs 3.97 billion premium in July/August. Likewise, National Life Insurance Company collected Rs 1.6 billion and NLIC collected Rs 1.5 billion premium during the same period.

The four-month lockdown that was imposed in March 24 to control the spread of coronavirus affected life insurance businesses. Since the renewal of old insurance policy is done in April, May and June, the insurance business grows during this time.

As the fiscal year ends in June/July, the premium collection in the month is higher than other months. However, due to the lockdown, it was not easy for the insurance businesses.

After the lockdown was eased in June, the life insurance companies were back in business. The premium collection in June was Rs 24 billon, which is higher than average. The premium collection was higher as the companies and insurance agents were active after the lockdown was lifted.

CEO of Union Life Insurance Company, Manoj Kumar Lal Karna informed that with the impact of June, the collection of insurance premiums has also increased in July. “There was no lockdown in July and so the agents could go to the field and work,” he said, adding, “As a result, the insurance premium increased in July.”