Kathmandu: Non-life insurance companies have been issuing internal circulars to their branch offices not to give much priority to agriculture and livestock insurance. Stating that it would take years for the government of Nepal to disburse the grant money, they are instructed to focus less on agricultural insurance.
The Government of Nepal has been providing 75 percent subsidy in insurance fee for the last 5-7 years when insuring agriculture and livestock. It has been increased from 75 percent to 80 percent from the current fiscal year. The government has not paid the grant for more than a year.
Such issue disclosed during a discussion with the Regional Heads and Branch Heads of the Insurance Board of Province No. 1.
During the discussion, they questioned the loan and insurance saying that the subsidy for agriculture and livestock insurance was not paid on time.
On behalf of the insurance companies, more than 29 people including Bipin Kumar Lal, Head of State One and Two of LIC Nepal, Regional Head of Nepal Life, Regional Head of Asian Life, Branch Heads of various companies participated.
The staff had many questions about the children’s insurance policy. They mentioned that there was a problem with the arrangement of paying only 20 percent of the claims.
Director of Insurance Board Dinesh Kumar Lal, while replying, said that the children’s insurance policy was brought after discussing with the Insurers Association. Lal has explained to the employees that the main reason for bringing this insurance policy was to control the increase in criminal activities through such insurance policies.
Employees pointing to the child insurance policy said that the provision that parents have to insure all their children is not practical.