Surya Jyoti's money-back policy smacks of shadiness
Nepal Insurance Authority turning a blind eye to this

KATHMANDU, MARCH 16 – Irregularities have been uncovered in the money-back insurance policies sold by Surya Jyoti Life Insurance Company. An inspection team from the Nepal Insurance Authority (NIA), after analyzing selected policies, identified discrepancies in the company’s money-back schemes.
The inspection team concluded that these policies were structured in a way that resulted in immediate financial losses for the insurer. Consequently, the team has recommended a detailed investigation into the policies issued by the company.
During its review, the team also analyzed lapsed policies and found that certain policies—issued under specific agent codes—had lapsed after just the first premium payment. Most of these were money-back policies, suggesting that they were issued primarily to generate commissions and incentives for agents rather than to provide genuine risk protection.
Notably, all 34 policies issued under agent code 9130039 in 2021 had lapsed. This strongly indicates that these policies were not sold for actual insurance purposes but rather to exploit commission and incentive structures.
Signs of manipulation in premium payments
The inspection further revealed that 5% of the insured amount had been disbursed as money-back benefits through various banks. Additionally, in some cases, policy premiums were not paid by the insured but by third parties—individuals or institutions—and later adjusted using agents’ commissions and other incentives. This suggests that dummy policyholders were created to facilitate policy sales.
The inspection team’s report, submitted to the NIA’s review committee, highlights that the company has engaged in other questionable transactions as well. It warns that such practices lead to immediate financial losses for the insurer and recommends a comprehensive investigation into these activities.
Money-Back policies gaining popularity despite concerns
In recent years, life insurance companies have been prioritizing money-back policies, which provide a fixed percentage of the insured amount at predetermined intervals before the policy term expires. At maturity, the remaining balance and bonuses are paid in a lump sum.
Agents argue that these periodic payouts make it easier for policyholders to manage annual, semi-annual, or monthly premium payments. Surya Jyoti also claims that since policyholders receive partial returns before maturity, they can reinvest the funds in other ventures.
Surya Jyoti currently offers the following money-back policies:
- Surya Jyoti Easy Payment Life Insurance
- Surya Jyoti Dhan Labh (Wealth Benefit) Life Insurance
- Surya Jyoti Three 20 Dhan Bahar (Wealth Bloom) Life Insurance
- Surya Jyoti Dhan Vriddhi (Wealth Growth) Life Insurance (Advance Payment)
How these policies work
Under the Surya Jyoti Dhan Labh Life Insurance Plan (12-year term):
- 25% of the sum assured is paid within the first four years.
- Another 25% is paid in the eighth year.
- The remaining 50%, along with bonuses, is disbursed in the twelfth year.
Under the 15-year plan:
- 25% is paid in the fifth year.
- Another 25% in the tenth year.
- The remaining 50%, along with bonuses, is settled in the fifteenth year.
Allegations of manipulation and pressure tactics
Despite being marketed as beneficial, these money-back policies have reportedly been plagued by severe irregularities. Employees at Surya Jyoti claim that policyholders often do not directly receive their first or second payouts. Instead, agents pressure them into using the refunded amount to purchase another policy.
One company staff member revealed that the way these policies are advertised does not align with reality. Policyholders often face hurdles when trying to access their payouts, while agents, in contrast, earn substantial commissions.
When approached for a statement regarding these alleged irregularities, the NIA spokesperson Sushil Dev Subedi declined to comment.

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