Health and Life Insurance

The study aims to explore the real status of investments portfolio structure of both life and non-life insurance companies of Nepal. Insurance Board of Nepal has issued modified directives for the safe and secure investments of Insurance fund The paper examines the current investment practices adopted by the insurance companies and compare with the norms of directives. Most of the companies have invested more than required fund in secured sector giving priority to solvency over profitability. Among the 234 cases, 37 cases are non-compliances whereas 197 cases are compliances. Out of 37 noncompliance cases, 28 cases are more sensitive. Life insurers fail to comply the statutory provision in 5 cases and non-life in 23 cases. However, in voluntary category, 1 and 8 cases are not complied by the life and non-life insurers respectively. Overall scenario of the investments portfolio is satisfactory ignoring few cases.

Life and medical insurance are very important investments in securing the financial security and safety of the family. The figures of insurance penetration and density are pathetically low in India compared to developed countries which prompted  to take up the study to understand type of life Insurance policies preferred,  amount spent on life and medical Insurance, reasons for buying the cover and perceptions of customers towards service levels offered by insurance companies. The sample mostly comprised members of teaching and training profession and feedback was obtained in Hyderabad using a structured questionnaire having sample size of 105.The study showed that the respondents had low cover with preference for money back policies. The investment was seen as a protection of the family interests and to reduce financial burden. Correlation and influence was observed in terms of qualification and Income with the amount spent on insurance indicating insignificant influence of other variables.

Key Words: Financial Security, Hospitalisation, Insurance, Policies, Preferences.

Life insurance occupies an important position in the financial sector of an economy. It contributes to economic development through risk management, protection of risks, and mobilization of savings leading to capital formation in the country.The insurance sector is a colossal one and is growing at a speedy rate of 15-20 per cent. Together with banking services, insurance services add about 7% to the country's GDP. Insurance industry has been facing problem of high lapsation ratios in past few years. Lapsation is an issue faced in countries all over the globe.From the study, it is inferred that main reasons for Lapsation are product mis-matches, due to wrong selling, mis-selling or forced selling by advisors or lack of understanding of the product by policyholder.