Kathmandu: The crop and livestock insurance has increased by 69 times within a space of six years amid the subsidies provided by the Government of Nepal against the insurance premium. It has been observed that the corporate houses having huge investment in the agro industry are the most benefiting group.
The Govt offers subsidies to encourage the adoption of crop and livestock insurance among poor and marginalized communities but in reality the benefits have been taken away by the large industrial and trading houses.
According to the Insurance Board, the sum assured of crop and livestock insurance has increased by 69 times from the financial year 2070-71 to 2077-78. In FY 2070-71, risk equivalent to Rs. 62.54 million was transferred by the insurance while by the end of FY 2077-78, non-life insurance companies have owned risk above Rs. 43 billion 30 million.
Despite the expansion of agriculture and livestock insurance, common general farmers complain that non-life insurance companies show reluctance to bear the risk and do not pay claims on time. On the other hand, non-life insurance companies have been responding that there has been issued in the claim settlement as the Govt pays the subsidy too late.
In the FY 2070-071, a total of Rs.62.54 crore was insured including agro insurance of Rs. 1.52 crore. While in FY 2077-78,the non-life insurance companies had accepted the risk of Rs. 43.30 billion including Rs.2.91 billion under agro insurance.
In the FY 2070-71, only 50 percent subsidy against the insurance premium was provided while in FY 2077-78 a total of 75 percent subsidy has been provided by the Govt.
In the year 2070-071, a total of Rs 3.04 core premium was collected while in FY 2077-78, a total of Rs. 1.786 billion insurance premium was collected against agro and livestock insurance. According to the Insurance Board, the government had provided a total of Rs 1.45 billion in the FY 2077-78.