July 13: Insurance policies worth Rs 12.38 billion have been surrendered in the first 11 months of the current fiscal year. According to the Nepal Insurance Authority, by the end of Jestha (mid-June) of the current FY, the insured have surrendered 92,381 insurance policies. According to the authority, in the current fiscal year, the highest number of insurance policies was surrendered in the month of Shrawan (mid-July to mid-August).

In Shrawan, the insured surrendered 8,422 insurance policies worth Rs 1.51 billion. The least amount of insurance was surrendered in the month of Ashoj (mid-September to mid-October) when 6,063 insurance policies worth Rs 773.32 million were surrendered.

Last month (Jestha ie mid-May to mid-June) alone, clients surrendered insurance policies worth Rs 1.3 billion. The insured have surrendered 9,733 insurance policies in the review month.

Nepal Life Insurance Company Ltd topped the list of companies whose clients surrendered their insurance policies in Jestha. The insured surrendered a total of 2,858 insurance policies worth Rs 433.39 million of Nepal Life Insurance Company.

Likewise, Life Insurance Corporation (Nepal) Limited witnessed surrender of 1,722 insurance policies worth Rs 138.8 million. Similarly, clients surrendered 1,711 insurance policies worth Rs 124.6 million of Rastriya Bima Sanstha had during last month.

Experts in the insurance sector share that the surrender of insurance policies has increased due to the economic recession. Shivnath Pandey, Chief Executive Officer (CEO) of Sanima Reliance Life Insurance Company said that due to the recession in various sectors, most of the insured are surrendering their policies.

"Now, even though there is liquidity in the bank, there is a situation where the borrowers are not getting loans. There is also recession in the real estate," he said, adding, "That's why the insured surrender the policy to meet their basic needs."

He added that it is easy for the insured because they can easily surrender the policy by giving an application when money is needed.

"Since the recession is going on not only in Nepal but also in the whole world, it is natural to surrender the policies when the income source as well as the purchasing power is reduced," he said.