Nepal Life CEO Parajuli Accused of Falsely Claiming 122 Kharba Rupees in Payments
Nepal Life Insurance CEO Pravin Raman Parajuli has claimed that the company paid 122 kharba rupees to policyholders over 25 years, which contradicts audit reports. The company's actual payments amount to only 1 kharba 3 arba rupees. The Nepal Insurance Authority has warned of regulatory action against those spreading misinformation.
Kathmandu. Nepal Life Insurance's Chief Executive Officer (CEO) Pravin Raman Parajuli has made a false claim with misleading statistics that the company paid 122 kharba rupees to policyholders in its 25-year history.
In a 1-minute 26-second video message released from the company's official TikTok account, he said, "Namaste, Nepal Life Insurance Company Limited has fulfilled its commitment to its policyholders by paying 122 kharba in its 25-year history to date." Clarifying further, he said, "Among these, there are three types: maturity, survival, and death claim. If we look at only the death claim payout, the institution has paid 9 kharba 34 arba in death claims. I would like to inform that this is 99.13 percent in terms of policy numbers for the previous fiscal year 2082/83."
He further said, "Institutionally, the institution publishes these indicators every quarter in a structure prescribed by the Nepal Insurance Authority. I believe that by understanding and verifying whether any information or statements given about the institution from any informal unorganized sector match the institution or its indicators, you will further strengthen your trust in the institution."
As dissatisfied agents of the company launched a campaign to surrender insurance policies en masse, and the policy surrender rate increased, CEO Parajuli made the false claim while issuing a video message in defense of the company.
If one were to believe his false claim, it would imply that Nepal Life paid policyholders an amount 6 times the Nepal government's annual budget for 2083/84 (21 kharba 24 arba 34 crore) over 25 years.
When contacted on his mobile phone for a reaction, Parajuli did not respond.
According to Nepal Life's audit report for fiscal year 2081/82, the company had paid a total of 1 kharba 3 arba rupees in claims up to that year.
According to Nepal Life Insurance's audit report for fiscal year 2081/82, its life insurance fund stood at 2 kharba 32 arba 74 crore rupees. This was Rs. 1 kharba 95 arba 7 crore 46 lakh in FY 2080/81. According to the unaudited financial statement for FY 2082/83, the company's life insurance fund stands at 2 kharba 73 arba 55 crore rupees.
Sushil Dev Subedi, Executive Director of the Nepal Insurance Authority, responded that regulatory action will be taken against anyone who publishes or broadcasts information or statistics that mislead the general public.