July 20, 2021 | Investopaper
The government will provide a 50 percent subsidy to farmers when insuring agriculture and livestock from Shrawan, 2078 BS. Earlier, farmers had been receiving a 75 percent subsidy for agriculture and livestock insurance. Now, starting from Shrawan 1, 2078 BS, the government will provide a 50 percent subsidy.
In the budget speech for the current fiscal year 2078/79, the outgoing Finance Minister Bishnu Prasad Poudel had reduced the subsidy given by the government for agriculture and livestock insurance by 25 percent.
Most non-life insurance companies charge a premium of 5 percent of the sum insured when insuring livestock and agriculture. If a farmer insures a total amount of Rs 100,000, the insurance premium amounts to Rs 5,000. Out of the total insurance premium, the government will provide 50 percent or Rs 2,500 worth as a subsidy. Hence, the farmer has to pay Rs 2,500 of the premium amount.