Kathmandu. The Office of the Auditor General has said that the insured is facing financial crisis due to non-payment of compensation for agricultural insurance on time.
Fiscal year 2080 prepared by the Auditor General. This was stated in the 62nd Annual Report of 81. The Auditor General submitted the report to President Ram Chandra Poudel on Wednesday.
The report has concluded that the confidence in the insurance system is decreasing and the continuation of insurance has decreased due to the financial crisis faced by the insured farmers due to lack of compensation on time. The report pointed out the need for insurers to adhere to deadlines, effective regulation and monitoring by the Insurance Authority, simplification through the digital system and maintaining transparency in the insurance claim payment process.
According to the report, 32,566 insurance companies in 14 insurance companies have demanded payment of insurance claims worth Rs 1.70 billion in the review year. According to the report, rs 1.58 billion was paid for insurance claims of 33,128 insurance policies, including the payment of insurance claims in the previous year, and Rs 374.1 million of 4,827 policies were pending.
According to the Agriculture, Livestock and Herbal Insurance Guidelines, 2079 BS, the insurer has to pay the claim within a maximum of 57 days from the date of receipt of the insurance claim. The Auditor General has advised to implement this provision effectively.
Similarly, if farmers have 100 per cent access to agriculture and livestock insurance, the subsidy amount of the existing insurance premium is expected to increase by 25 times. “Therefore, agriculture and livestock insurance are based on the policy of equality, so the policy of equality should be implemented by studying alternative measures,” the report said.
The Auditor General has suggested formulating and implementing policies and laws to provide subsidy on premium by giving priority to small farmers and economically disadvantaged farmers on the basis of demarcation of the respondent family insurance amount.
According to the report, there are structural, systemic and policy difficulties in the implementation of agriculture and animal insurance programs. According to the report, farmers have not been able to get information related to subsidy, insurance process has not been simplified, there is no scientificity in determining the sum assured amount, there is no presence of insurance companies in rural areas, access of small and marginal farmers has not increased and the claim payment process has not been simplified.
