Collection of Life Insurance Premium grows by 32.12 percent

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Collection of Life Insurance Premium grows by 32.12 percent

January 25: The collection of insurance premiums has increased by 32.12 percent in the first six months of the current Fiscal Year (FY) 2020/21 despite the Covid-19 pandemic. The life insurance businesses were affected between March to August last year due to the lockdown and restrictions imposed to prevent Covid-19 from spreading. However, by mid-December of the current fiscal year, the life insurance business started to improve gradually. The data of the Insurance Board till mid-December highlighted such findings.

 At present, Nepal has 19 life insurance companies in operation. According to the board, by mid-December, they have collected Rs 62.85 billion in insurance premiums. Last year, they had collected Rs 47.57 billion in insurance premiums.

Executive Director of the Insurance Board Raju Raman Poudel informed that the Covid-19 crisis has also seen good growth in the life insurance business.

"The impact of the Covid-19 pandemic on life insurance has not been as severe as we had expected," he shared.

He informed that the insurance business grew especially due to new policies introduced by companies as well as peoples’ understanding on the importance of insurance due to Covid-19.

"As the business grows, by the end of the current fiscal year, companies will collect Rs 1.3 billion from life insurance premium," he added.

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