As per the record of the Insurance Authority, policyholders have surrendered policies worth Rs 9.67 billion by the month of Chaitra.
The insurees surrendered 8,422 insurance policies of Rs 1.15 billion in Shrawan, 8,052 policies worth Rs 1.14 billion in Bhadra, 6,063 policies worth Rs 773.2 million and 6,746 policies worth Rs 1.11 billion in Kartik.
similarly, they surrendered 7,650 policies worth Rs 1.01 billion in Mangsir, 6,782 policies worth Rs 874.3 million in Poush, 9,839 policies worth Rs 1.32 billion in Magh, 8,939 policies worth Rs 1.08 billion in Falgun and 9,358 polices worth Rs 1.18 billion in Chaitra.
Out of all companies, Nepal Life Insurance’s customers have surrendered the most number of policies. A total of 2,698 policies worth Rs 422.2 million have been surrendered in Chaitra.
Similarly, 1,555 policies worth Rs 183.7 million have been surrendered of LIC Nepal.
NIA views that due to economic recession, many insures are opting to surrender their polices.
Since the trend of policy surrender is increasing, Insurance Board has been analyzing the reasons behind it.
In a bid to curb the policy lapse and surrender, the board has also issued Life Insurance Related Guidelines 2078 under which policyholders can take loans against policies or surrender the policies only after three years of policy issuance.
A section of the insurance sector blames insurance agents for the increasing trend of surrender. They believe that the agents force the general public to purchase insurance policies for their own benefit. Later, the policyholders surrender the policies due to the inability to pay premiums.
