. The number of life insurance companies surrendering and spending policies is decreasing.

According to the Nepal Insurance Authority, the policy surrender amount of life insurance companies has decreased by 9.18 percent in the second month of the current fiscal compared to the same period of the last FY.

In the first two months of the current fiscal year, policies worth Rs 2.50 billion have been surrendered. This is 9.18 percent less than the same period last year. In the same period of the last FY, the policy surrender amounted to Rs 2.75 billion.

According to the NRA, the number of surrenders has also decreased. The number of surrenders decreased by 19.47 percent to 15,898 in the same period of the current fiscal year compared to the same period of the last fiscal year. It was 19,741 in the same period last year.

In the last two months, the insurance company has spent Rs 36.43 billion. This amount is 5.07 percent more than the previous two months. It had posted a net profit of Rs 34.67 billion in the same period last year. According to NEA, the number of insurance policies has reached 12,13,562.

It was 1,180,616 in the same period last year. The same has increased by 2.79 per cent during the period. The problem of policy surrender in insurance companies is not today. As policy surrenders increase in the company, a large amount of money is coming out of the company.

Policy surrender in the insurance sector has also increased due to the deteriorating economy of the country in recent times. It is said that the surrender increases when the insured does not properly evaluate his financial condition while insuring. Similarly, it is said that if the representative of the insurance company does not submit the right information to the insured on time, the number of large sums of insurance and policy surrender does not decrease.