Nepal | June 03, 2020

Govt policies help life insurance sector growth

Himalayan News Service
Share Now:

Kathmandu, July 7

The life insurance market in Nepal has been growing not through the marketing efforts of insurance companies or the growing awareness among the general public to get themselves insured but due to some of the government policies that automatically help the market expand.

The foreign employee insurance policy, which is a temporary policy purchased by migrant workers, covered around 50 per cent of the total number of life insurance policies issued by eight life insurance companies of the country, according to the Insurance Board.

Data from the Insurance Board, the regulatory authority of the domestic insurance market, reveals that most of the life insurance policies being purchased are not due to public awareness but as a result of the compulsory rules that the government has introduced for outbound workers.

According to the regulatory authority, the eight life insurance firms in operation in the country issued over 2.3 million life insurance policies in fiscal year 2015-16, of which the share of foreign employee policies stood at over 1.1 million, which is 49.35 per cent of the total policies sold.

According to IB, in fiscal year 2014-15, a total of over two million life insurance policies were issued by the eight life insurance companies. Back then as well the share of foreign employee policies stood at 45 per cent of the total policies sold, which translates to altogether 912,219 policies.

In fiscal year 2015-16, a little over 1.4 million non-life policies were issued by 17 non-life insurance companies in the country, whereas the number of total non-life policies issued in the previous fiscal was one million.

Insurance specialist Rabindra Ghimire said that this trend is not a good sign for the development of the life insurance market in the country. “For the life insurance market to thrive in the country the number of term policies should increase and not just temporary policies,” he added.

The government has introduced a compulsory provision of life insurance for people who wish to go abroad for foreign employment.

A version of this article appears in print on July 08, 2017 of The Himalayan Times.

Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Tropical storm kills 17 in El Salvador and Guatemala

SAN SALVADOR: Rains from Tropical Storm Amanda left at least 17 dead and seven missing while causing extensive damage across El Salvador and Guatemala that pushed thousands of people into shelters amid the coronavirus pandemic. EL Salvador Interior Minister Mario Durán said Monday some 7,000 peo Read More...

Is pedestrian and cycle-friendly mobility possible post-lockdown? 

Kathmandu   Cycling to his place of work, Dr Paban Sharma, Professor at Patan Academy of Health Sciences, has had to face the brunt of the police officials on more than one occasion. Ever since the nationwide lockdown was imposed on March 24, Sharma’s preferred means of commute has been h Read More...

Nepal Airlines Corporation, Airbus, aircraft, Tribhuvan International Airport, Kathmandu, Toulouse, France

Nepal Airlines operated 22 chartered flights during lockdown

Kathmandu, June 2 Although the government had restricted operations of domestic and international flights in the wake of nationwide lockdown, the national flag carrier, Nepal Airlines Corporation (NAC), has been conducting chartered flights under special conditions. According to the Corporation, a Read More...

Preparing schools for a changing digital landscape

In the last two decades, the world has witnessed a dramatic shift in both its educational and technical landscapes. Nepal has attempted to follow suit. I grew up in a middle class family in south eastern Nepal. We did not have a computer at home, let alone a cell phone. My family used a dial up p Read More...

Coronavirus cases in Karnali Province jump to 252 with 54 new infections

KATHMANDU: Fifty-four additional people have tested positive for the coronavirus infection in Karnali Province, on Tuesday. As of today, five districts of the province have witnessed cases of COVID-19. With the newly confirmed infections, number of cases has reached 252 in the province. Until Read More...

In Pictures: Masks On, Game On

Local youths playing cricket to spend time during lockdown with their mask on for safety in Kshetrapati, Kathmandu, on Tuesday, June 2, 2020. Photo: Balkrishna Thapa Chhetri/ THT Read More...

Worldwide coronavirus cases cross 6.29 million, death toll nears 375,000

At least 6,290,684 people have been reported infected with the novel coronavirus globally and 374,933 have died, a Reuters tally shows. Infections have been reported in more than 210 countries and territories since the first cases were identified in China in December 2019. Meanwhile, US he Read More...

FIFA asks leagues to use "common sense" over Floyd protests

BERN: World soccer's governing body FIFA has asked competition organisers to use "common sense" with players who display messages of protest over the death of George Floyd, an unarmed black man killed in police custody in the United States. FIFA regulations bar players from displaying any "po Read More...