September 24, 2020 | Investopaper
The agriculture (crop and livestock) insurance in Nepal has increased by 17.61 percent in the last fiscal year. In FY 2076/77, non-life insurance companies have collected premium of Rs. 1.18 Arba from agricultural insurance, which is Rs. 17.69 crores more than the previous fiscal year. In the fiscal year 2075/76, the companies collected about Rs. 1 Arba through agricultural insurance.
With the government subsidy, the business of agricultural insurance has expanded in Nepal. The government provides 75 percent of the premium amount as the subsidy for agricultural insurance. Out of the total insurance premium collected in FY 2076/77, the government has provided Rs. 88.62 croresas the subsidy.
Agricultural Insurance In Nepal
Agriculture insurance was started commercially from FY 2070/71. In the first fiscal year 2070/71, the insurance companies collected Rs. 2.26 crores through agricultural insurance. This has increased to Rs 1.18 Arba as of fiscal year 2076/2077.
The share of agricultural insurance in the total insurance business has reached about 10 percent. The Insurance board has assigned the districts and the mandatory areas of work for the general insurance companies to provide agricultural insurance services in all districts.
At present, insurance companies have increased access to agricultural insurance at the local level by collaborating with microfinance institutions at the local level. In addition, the government has designated districts for insurance companies to do business in agriculture.
Currently, there are more than 22 products under agricultural insurance. Goats, fish, poultry and other livestock can be insured through livestock insurance. Similarly, crop insurance includes rice, ginger, orange, turmeric, mushroom and other crops.
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The increase in awareness among the farmers about the agriculture insurance along with the initiatives by the government has also led to the growth of this business.
The table below presents the premium collection from agricultural insurance in Nepal.
Premium Collection From Agricultural Insurance
|Fiscal Year||Premium (Rs In Crores)|
Source: Insurance Board
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