KATHMANDU: A total of fourteen life insurance companies settled insurance claims amounting to over Rs 130 billion by the third quarter of the current fiscal year. According to the financial statements published by these companies, this figure represents a 15.65 percent increase compared to the same period last year, when they settled claims worth more than Rs 112 billion.

This year has seen an increase in the settlement of insurance claims by all life insurance companies. Rajkumar Aryal, Chief Executive Officer of Sun Nepal Life Insurance Company, noted that companies are processing claims efficiently. Addressing reports that some companies have occasionally delayed the settlement of claims, Aryal explained that there are specific methods and procedures in place to ensure claims are paid promptly to those who submit all necessary documents. He also mentioned that problems can arise in cases where insured individuals use their insurance policies to secure loans but fail to repay them. In such instances, after the maturity of the policy, only the remaining amount, after deducting the loan’s principal, interest, and penalties, is returned to the insured.

Comparing this year's third-quarter data to the same period last year, Prabhu Mahalaxmi Life Insurance Company’s net claim settlements increased by 140.26 percent, the highest among the companies. Similarly, Sanima Reliance Life Insurance Company, which settled claims worth more than Rs 1.618 billion last year, settled claims worth over Rs 3.83 billion this year.

In terms of the total amount paid, Nepal Life Insurance Company leads with settlements amounting to Rs 36.9 billion in net claims in the nine months this year. During the corresponding period of the last fiscal year, Nepal Life Insurance Company had settled claims worth over Rs 32.75 billion.