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Three insurance companies lower their returns on premium

Insurance in Nepal

Life Insurance Corporation

American Life Insurance Company

Nepal Life Insurance Company


Prudential Insurance Company

Himalayan Gen. insurance
GPO Box 148
Durbar Marg, Kathmandu
Tel: 226634
Premier insurance
Sagarmatha Insurance Company
GPO Box 12211
Thapathali, Kathmandu
Tel: 240896
Nepal Insurance Co. Ltd.

GPO Box 3623
Kamaladi, Kathmandu
Tel: 221353
National Insurance Co. Ltd.

GPO Box 376
Tripureswor, Kathmandu
Tel: 221182
 

 

News item 14-3-2007

The decision of three major insurance companies to lower their committed returns on premium has shattered the dream of thousands of policy holders of doubling their savings through a 15 year insurance policy. The latest rate of return, which has sliced off Rs 33,000 worth of returns in a 15-year policy amounting to Rs 100,000 has already been opposed fiercely by insurance agents who sold thousands of polices with the promise of doubling the returns in 15 years. Life Insurance Corporation (Nepal), American Life Insurance Company (Alico) and Nepal Life Insurance Company (NLIC) that entered the Nepali market over three years ago, had promised a 6.5 percent annual rate of return, meaning that overall return after 15 years of annual investment would be doubled. However, contrary to the promise with which they marketed their products, companies have scaled down the rate to as low as 2.5 percent, citing low return on investment due to a sluggish economy. Alico has announced a bonus of 2.5 percent in case a client chooses to withdraw the policy, and will pay additional 2.5 percent in case they continue the policy till maturity. LIC Nepal has declared bonus of 4.3 percent for policy lasting up to 15 years, 4.7 for policy of 20 years, 5.3 for policy of 25 years and 6.5 percent for policy exceeding 25 years. Likewise, NLIC has announced bonus from 3.9 to 6.5 percent for life insurance products of different variations, said a senior official at Insurance Board (IB).

 

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