June 28: Life insurance companies have collected around Rs 3 billion in insurance fees under the heading of foreign employment insurance scheme in the first 11 months of the current fiscal year (FY 2022/23).

According to the Nepal Insurance Authority, 10 life insurers have collected Rs 2.96 billion in insurance fees from foreign employment insurance policies in 11 months of the current fiscal year.

According to the Foreign Employment Act, 2064, Nepali migrant workers going for foreign employment must compulsorily have insurance. With the increase in the number of people going to foreign employment from Nepal, the insurance fee collected under the foreign employment insurance heading has increased.

According to the Nepal Rastra Bank, the number of Nepalis who have received work permits for foreign employment in the 10 months of the current fiscal year has reached 660,155.

During the review period, Sun Nepal Life Insurance has collected the most insurance fees from foreign employment insurance. The company has collected Rs 1.2 billion insurance fee by mid-June this year. Similarly, Nepal Life stood second for collecting Rs 41.64 million under the heading of foreign employment insurance followed by IME Life Insurance which earned Rs 39.97 million.

Rajkumar Aryal, Chief Executive Officer of Sun Nepal Life Insurance, says that the government has made foreign employment insurance mandatory for overseas work, so life insurance companies are collecting significant insurance fees.