Agricultural insurance to be closed if government fails to pay Rs 3 billion

KATHMANDU:The Nepal Insurers' Association  has complained that the government has not provided agriculture insurance subsidies for the past three years. The association  published a statement on Monday stating that the government is experiencing difficulties as a result of non-grant.

In the statement, it is said, "For the past 10 years, insurance companies have been issuing agricultural insurance policies in accordance with the guidelines of the regulatory body Nepal Insurance Authority, and paying the claims for damages in case of damage, the government subsidy should normally be received only after one year. The subsidy amount set by the government for agricultural insurance fees is about 3 billion left to be given to the insurance companies.

The amount of subsidy for fish has been outstanding since the year 2077. The amount of subsidy for crop insurance has also been partially given from asoj 2078 to the end of Chaitra and is still remaining. Likewise, the subsidy amount of livestock insurance has been outstanding since asoj 2078.

The association demands that the regulatory body Nepal Insurance Authority, the Department of Agriculture and the Ministry of Agriculture and Livestock should pay serious attention to stopping the subsidy of the companies that have acted in accordance with the agricultural insurance guidelines issued by the Nepal Insurance Authority, as it will have a negative impact on the agricultural plan of the Government of Nepal.

According to the association, the insurance companies are at high risk because they have not received the grant money despite repeated oral and written requests to the Ministry of Agriculture and Livestock, Department of Agriculture and the Nepal Insurance Authority.

They have also warned that they will not issue insurance policies for all insurances related to agriculture until the remaining arrears of subsidies that should be received from the government are fully received. In addition, the association says that the companies are unable to pay the related damage claims. The association has also mentioned in the announcement that the issuing of insurance documents related to agriculture and the payment of claims will be postponed from this jesth 7th.