December 8, 2020 | Investopaper
The number of agriculture and livestock insurance policies should be at least 5 percent of the total number of insurance policies issued by the non-life insurance company. The Insurance Board (Beema Samiti) has amended the Agriculture and Livestock Insurance Directive to make it mandatory for companies to issue agricultural insurance. Earlier, the board had directed the companies to issue agricultural insurance defining the districts for each non-life insurance company.
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Agricultural Insurance was formally started from Magh 1, 2069. The board had alloted the districts to the companies for doing the agricultural insurance business. At present, the insurance board has amended the directive to a minimum of 5 percent.
However, as per the insurance experts, 5 percent of the total insurance policy is very low. This will further shrink agriculture and livestock insurance business. Now companies will be able to increase the number by issuing small insurance policies.
Likewise, the right to assess the damage will be given to the insurer. The board has made a provision for the insurance company to assess the damage up to Rs 200,000. Also, the insurance companies should establish agriculture and livestock insurance department. As per the revised directive, the department should have technical staff for agriculture and livestock as per the need. The company should also conduct a separate livestock insurance training for agricultural technicians and damage assessors in coordination with the Government of Nepal, State Government, local level and the board at least once a year in the designated district.