Subsidy for Agro and Livestock insurance increased to 80pc

Kathmandu: The newly formed coalition government has showered some relief to the agro insurance. Finance Minister Janardan Sharma announced that the government has made an arrangement to provide 80 percent subsidy in the premium of agro and live-stock insurance. Sharma has raised the bill to replace the ordinances related to finance by former Finance Minister Bishnu Paudel.

During the last annual budget announcement of FY 78/79, the then Finance Minister Paudel had announced deduction in the subsidy of agro and live-stock insurance. The subsidy was limited to 50 percent instead of 75 percent of last year. Non life insurance companies had collected Rs.118 crores in premium during FY 76/77. Out of which GoN provided 88.62 crores as subsidy. The subsidy was 75 percent during FY 76/77.

Now, the farmer or the corporate house involved in farming will have to bear only 20 percent of the total premium except the postal stamp fee. For example, if an insurance tariff totals to Rs.1000,then the farmer has to pay Rs.200 plus the postal stamp fee and rest of the premium will be paid by the government as subsidy.

The Insurance Board had suggested to continue the subsidy being given for agricultural crop and livestock insurance last year. But outgoing Finance Minister Poudel had reduced the subsidy. The government has been providing grants to promote agriculture and animal insurance for the past three to four years. But its effectiveness has not been seen as the subsidy is enjoyed by a handful of corporate house. On the other hand, general farmers suffers a lot due to the unnecessary hassles of documentation for the live-stock and crop insurance.

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