Life Insurance Paid Rs 7.26 Billion In Agent Commission In Nepal

June 3, 2020 | Investopaper

Nineteen life insurance companies in Nepal have distributed insurance agent commission of around Rs 7.26 billion. As per the third quarter financial statements of the current fiscal year 2076/07 published by the insurance companies, the insurance agent commission amount has been paid to about one and a half lakh life insurance agents in that period.

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As agents have a big role to play in the insurance sector, there is a provision that they have to pay a certain percentage as commission when issuing every insurance policy. According to the financial statements of the nine months of the current fiscal year, two companies have distributed more than one billion agent commissions in that period.

As of Chaitra end of the current fiscal year, Nepal Life Insurance has paid the highest agent commission amount. Likewise, Mahalakshmi Life Insurance has paid the lowest agent commission.

Nepal Life Insurance Leads In Agent Commission

Nepal Life Insurance Company, which is ahead of other life companies in terms of market share and networks, has spent Rs 2.18 billion in agent commission during the period. Similarly, Life Insurance Corporation (Nepal) has distributed agent commission of more than one billion rupees in that period. The company has spent around Rs 1.87 billion in agent commission Chaitra end of the current fiscal year.

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Similarly, Union Life Insurance and National Life Insurance Company have distributed agent commission amount of Rs 615.2 million and Rs 589 million respectively. In the same period, Asian Life Insurance spent about Rs 350 million, Met Life Insurance Rs 344 million and Prime Life Insurance Company Rs 232.9 million.

Likewise, Surya Life Insurance has paid Rs 222.7 million as commission, Citizen Life Insurance Rs 218.7 million and Reliable Life Insurance Rs 196.9 million insurance agent commission. Jyoti Life Insurance has distributed Rs 183.1 million, Gurans Life Insurance Rs 171.3 million and IME Life Insurance Rs 163.3 million as of Chaitra end of this year.

During the same period, Reliance Life Insurance spent Rs. 159 million and Sun Nepal Life Insurance Rs. 151.4 million. The state-owned Rastriya Bima Sansthan has paid around Rs 140 million, Sanima Life Insurance Rs 112.7 million and Prabhu Life Insurance Rs 91 million. The lowest amount of Rs 62.3 million was spent by Mahalakshmi Life Insurance in the same period, according to the financial statement.

So far, about 500,000 people have taken insurance agent’s license from the life insurance companies and about 150,000 people are active.

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