LIC Nepal is the Nepali arm of Life Insurance Corporation of India – the largest life insurer in India and one of the biggest in the world. That parentage is its main draw: deep financial backing and decades of claims experience. On our derived measure its claim settlement is 92.69% for FY 2081/82 (#8 of 14), down from the prior year. This review covers what it actually sells, how it pays, and who it suits.
Quick Facts
| Detail | Information |
|---|---|
| Full name | Life Insurance Corporation (Nepal) Limited |
| NEPSE symbol | LICN |
| Established in Nepal | 2057 BS (2000 AD) |
| Type | Indian-backed – parent is LIC of India |
| Regulator | Nepal Beema Pradhikaran (NIA) |
| Market share (premium) | 10.98% (one of the largest) |
| Life fund | NPR 1.33 kharba (one of the largest) |
| Claim ratio FY 2081/82 (derived) | 92.69% (rank #8 of 14) |
| Claim ratio FY 2080/81 (derived) | 96.40% (declining) |
| Total claims paid FY 2081/82 | NPR 12.59 billion (Rs. 1,259.02 crore) |
| Entry age | 18 – 60 years (adult plans) |
| Policy terms | 5 – 25 years |
Claim Settlement Ratio: #8, Declining – in Context
An honest note on the number first. The NIA does not publish a per-company “claim settlement ratio.” It publishes claims paid and claims outstanding for each insurer, and the 92.69% here is a ratio we derive from those (claims paid divided by claims paid plus outstanding). It is amount-based and excludes rejected claims.
LIC Nepal’s derived ratio fell from 96.40% to 92.69% this year. As with the other large insurers, the cause is visible in the figures: LIC actually paid more in FY 2081/82 – Rs. 1,259.02 crore (about NPR 12.59 billion), up from Rs. 1,089.18 crore – but its year-end outstanding balance more than doubled, from about Rs. 41 crore to Rs. 99 crore. So the dip reflects a larger queue of claims still in process at year-end, not reduced payment. It is still a real decline worth watching across the next NIA report, and worth asking LIC about settlement timelines.
Plans Available (FY 2081/82)
Endowment: Jeevan Labh (flagship)
LIC Nepal’s flagship savings-plus-protection plan (Plan 361), and one of several endowment plans it sells (others include Jeevan Shree, Jeevan Utsav, Jeevan Sathi, and the Baal Unnati child plan). It pays the sum assured plus accumulated bonus at maturity, or the full sum assured to your nominee on death during the term. See the full list on LIC Nepal’s own site.
- Endowment bonus (FY 2081/82): Rs. 49 to Rs. 65 per 1,000 sum assured per year
- Riders available: Accident, Disability (LIC Nepal does not list a Critical Illness rider)
- Policy loan: Yes, after 3 years | Surrender: Yes
Term: Amulya Jeevan (flagship)
Pure life protection (Plan 346) – the highest cover for the lowest premium, with no maturity payout. LIC Nepal also offers Bima Kiran and a term micro-insurance plan.
Whole Life: New Jeevan Tarang (flagship)
Long-term cover with a savings element (Plan 360); LIC’s well-known Jeevan Anand (Plan 342) is another whole-life-style plan in the range. Suited to lifelong protection and legacy planning.
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Compare All PlansMoney Back: Dhan Bristi (flagship)
A money-back plan (Plan 358) that returns part of the sum assured at fixed intervals during the term. LIC Nepal runs several money-back variants alongside it. (Note: Jeevan Sathi is one of LIC’s endowment plans, not its money-back plan – a common mix-up.)
A Note on Bonus Rates
LIC Nepal’s declared endowment bonus for FY 2081/82 is Rs. 49 to Rs. 65 per 1,000 sum assured (dual-sourced from Beemapost and Insurance Khabar) – a mid-market range; several Nepali insurers declare higher. Its other plans carry their own declared rates, so confirm the bonus for the specific plan and term you are buying. To weigh insurers side by side, see our comparison of all 14 companies.
Who Should Choose LIC Nepal?
Choose LIC Nepal if:
- The backing of LIC of India – the largest life insurer in India – is what reassures you most
- You want a large, well-funded insurer (Rs. 1.33 kharba life fund) with a long Nepal track record
- You want a well-known endowment plan (Jeevan Labh) and brand familiarity
Consider alternatives if:
- You want the highest claim settlement record – Asian Life (98.85%), Sun Nepal (98.71%), and Prabhu Mahalaxmi (98.33%) rank higher
- You want the highest bonus – National Life (up to Rs. 85) and Nepal Life (up to Rs. 82) declare more than LIC’s Rs. 49 to Rs. 65
- You need a Critical Illness rider, a term longer than 25 years, or to enrol above age 60 – LIC Nepal does not currently offer these
See Your Own Numbers
Premiums depend on your age, sum assured, and term, so a single sample figure can mislead. Use the Premium Calculator to compare LIC Nepal’s estimated premium against all 13 other insurers for your exact inputs.
Data source: NIA Annual Report FY 2081/82 (Schedules 14 and 15) for financials and claim amounts; plan names from LIC Nepal’s own website; bonus rates from Beemapost and Insurance Khabar. The claim “ratio” is our amount-based derivation (claims paid over paid plus outstanding, in NPR crore); the NIA does not publish a per-company settlement ratio. Any premium shown by our calculator is an estimate, not a quote. Full disclaimer.