Insurance Authority issues productivity based crop insurance policy

Kathmandu: For the first time, Nepal Insurance Authority has issued food crops insurance policies based on productivity. According to the Authority, this insurance covers damage to crops such as rice, corn, wheat, barley, and millet.

The insured will get compensation for crop damage caused by fire, hurricane, typhoon, heavy rain, unseasonal rain, hail storm, snow, flood, drought, snowstorm, earthquake, landslide, lightning, diseases, insects, wild animal attack, and other allied risk.

Under the additional facility, the farmer will also get accidental insurance of coverage of NPR 2,00,000. Accidental risk coverage provides financial compensation in the occurrence of death of the life assured in an accident, suffering from an incurable disease, or disability.

The insured farmer can contact the nearest insurance office and submit the prescribed application to purchase the Policy. When issuing the food crop insurance policy, the time and date of the issue must be mentioned. At least five still photographs taken from different angles and a video clip of at least one minute of the insured crop field must be submitted along with the proposal form before issuing the policy. Crops grown in one single plot cannot be partially insured.

While determining the insurance rate, the insurance should be based on the production of crops. The insurance premiums will be determined at the rate of 5 percent of the sum assured in the case of rice, corn, and wheat crops and 3 percent of the sum assured in the case of barley and millet crops.

While determining the sum assured, the area planted with food crops, the productivity of the district, and the minimum support price of food grains are multiplied. The sum assured cannot be altered after the policy has been issued. There is also a facility for collective insurance of food crops. The insurance policy will be void unless the insured pays part of the premium.

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