Sun Nepal Life Insurance Settles Death Claim under Loan Protection Policy
9th November 2025, Kathmandu
Sun Nepal Life Insurance Company Limited (SNLIC) has underscored the critical role of life insurance in safeguarding financial stability by promptly settling a death claim under its Loan Protection Term Life Insurance policy.
Sun Nepal Life’s Insurance Settlement
This decisive action, which saw the company pay NPR 1 million to the affiliated cooperative, serves as a powerful real-world example of how insurance acts as a vital safety net, especially for vulnerable sectors of society. The settlement, made to the Swabalamban Mahila Savings and Credit Cooperative, highlights the immense value of institutional insurance partnerships in protecting borrowers, their families, and the financial institutions that serve them.
The Immediate Impact of Loan Protection Insurance
The claim arose following the passing of Madhu Basnet, a resident of Resunga Municipality-2, who had secured a loan of NPR 1 million from the Swabalamban Mahila Savings and Credit Cooperative. Crucially, this loan was insured through Sun Nepal Life Insurance.
The immediate consequence of the claim settlement is two-fold:
Debt Eradication for the Family: The payment of NPR 1 million directly to the cooperative ensured that the deceased borrower’s family was not burdened with the liability of the outstanding loan. In the absence of such insurance, the debt would become a severe financial crisis for the bereaved family.
Protection for the Cooperative: The cooperative, a key local financial institution, received its principal back immediately, protecting its loan portfolio and ensuring its financial health remains intact.
This case perfectly illustrates the core principle articulated by CEO Raj Kumar Aryal, who stated that life insurance acts as a “companion in difficult times” and a crucial tool for protecting wealth. By mitigating the financial risk associated with death, the policy converts a potential financial disaster into a manageable event for all parties involved.
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The Role of Institutional Partnerships and Women’s Empowerment
Sun Nepal Life’s strategic focus on the cooperative sector amplifies the broader economic and social impact of insurance. The company currently collaborates with over 500 cooperatives specifically for loan protection insurance, demonstrating a wide-reaching commitment to grassroots financial security.
CEO Aryal specifically emphasized the role of such policies in risk reduction and women’s empowerment. Cooperatives, particularly those like the Swabalamban Mahila Savings and Credit Cooperative, play a pivotal role in financial inclusion and empowering women entrepreneurs at the community level. When a loan is insured, the risk taken by these women is substantially reduced, encouraging greater participation in economic activities without the crippling fear of leaving behind unmanageable debt.
This institutional reach is extensive, with SNLIC noting that approximately 4,000 cooperatives across Nepal are affiliated with the company. The partnership ensures that a large number of local financial institutions and their members benefit from a standardized and reliable risk management tool. Representatives from the Gulmi District Cooperative Union, who were present at the handover event in Tamghas, highlighted that these policies contribute significantly to the financial security of cooperatives and their members, urging further expansion of institutional insurance coverage.
Commitment to Affordable and Reliable Services
Sun Nepal Life Insurance Company Limited’s mission extends beyond mere term life coverage. The company is dedicated to promoting affordable and reliable life insurance services that mitigate financial risks stemming from death, disability, and critical illness.
A key offering that sets SNLIC apart is Sun Medicare, a unique health coverage service that provides essential medical expense benefits during emergencies. This holistic approach ensures that customers are protected not only from the catastrophic financial impact of death but also from the high, unexpected costs associated with medical crises.
By structuring and promoting these specialized, risk-mitigation products, Sun Nepal Life is actively addressing the specific financial vulnerabilities present in the Nepali economy. The prompt settlement of the NPR 1 million claim, which also included an additional NPR 10,000 for funeral expenses, reinforces the company’s commitment to supporting families during their time of greatest need. This small, yet significant, addition for funeral costs demonstrates a human-centric approach to claim settlement.
The successful closure of this death claim serves as a powerful public endorsement of the efficacy and integrity of the Loan Protection Term Life Insurance policy, confirming its value as an essential component of responsible borrowing and lending in Nepal.
For More: Sun Nepal Life’s Insurance Settlement
