Kathmandu. Farmers in Karnali have become prisoners of indecision after the Commission for the Investigation of Abuse of Authority (CIAA) launched an investigation into the misuse of insurance subsidy amount for apple cultivation by Shikhar Insurance.
The Commission for the Investigation of Abuse of Authority (CIAA) had launched an investigation after a complaint was filed alleging that the amount of insurance subsidy was misused by mentioning more number of plants than the number of plants in the farmers’ fields. The Commission has given the initial responsibility of the investigation to the Nepal Insurance Authority and the AUTHORITY has carried out on-site investigations in the matter four times at Shikhar Insurance.
The insurance company has complained that there is a situation of uncertainty as the complaint has not been finalized even after the NEA has carried out on-site inspection and investigation. With just a few days left for the end of the current fiscal year, Shikhar Insurance has not been able to issue apple cultivation insurance policy.
The farmers in the fiscal year 2080. Gyanendra Bahadur Shahi, a member of the House of Representatives representing Karnali, has expressed concern with Shikhar Insurance after he complained of not getting compensation for the insurance claim of Rs 81. Stating that it was unable to pay the claim to the farmers as they were unable to pay their claims due to non-receipt of the subsidy amount, the insurance company has requested Shahi, a member of the House of Representatives, to end the irregularities in the insurance and insurance subsidy. Submitting a written statement on Shahi’s query, the insurance company has also requested to take initiative by suggesting ways to resolve the issue.
The government had been providing subsidy for apple cultivation insurance as per the Guideline 2070 BS to provide subsidy on crop and livestock insurance premium approved by the Council of Ministers on July 1, 2018. According to Shikhar Insurance, fiscal year 2079. Partial grant of 80 and 2080. No grant of Rs 81 has been received.
Rs. 32 crore premiums, Rs. 31 crore compensation:
According to the insurance company, rs 320 million has been collected as insurance premium in the eight years since the insurance program came into operation, out of which Rs 310 million has been disbursed. The insurance company has claimed that it is yet to receive Rs 300 million as insurance subsidy from the Government of Nepal.
For this reason, the current fiscal year 2081. This year, the insurance of apple plants has come to a standstill even with only a few days left for the end of 82.
In its statement to Shahi, the insurance company has written that in the case of farmers who have mentioned more than the actual number of plants in the insurance proposal, there is a situation of indecision due to lack of instructions from the concerned authorities regarding cancellation of the policy or amendment through confirmation. The insurance company is awaiting approval from the Insurance Authority as it is not possible to amend the insurance policy until the Directive of the Nepal Insurance Authority.
The insurance company has demanded that the insurance premium should be re-determined by amending the insurance policy and the amount of grant should also be received from the Government of Nepal as per the revised policy as rescheduled.
Fraud caused by farmers, not by the insurers ? :
The insurance company claims that the farmers have mentioned more number of plants than the reality at the time of filling the insurance proposal. The insurance company has said in the letter that the insured farmers have mentioned the number of apple plants in the proposal form more than the number of apple plants planted. Fiscal year 2080. An on-site study of the plants insured in 1981 revealed that 6,613 farmers had increased their plants by 25 per cent out of 7,574 farmers insured. At the same time, the number of plants of 994 farmers is not sure.
What is index based parametric insurance:
Nepal Insurance Authority (NEA) has approved apple cultivation insurance policy based on seasonal index for the first time in Nepal. Under the Sakchyam Project with the technical support of UK Aid, the Apple Cultivation Insurance Program based on the Seasonal Index has been in operation in Karnali Province for the last eight years. Under this project, agricultural insurance based on the Seasonal Index has been implemented for apple cultivation in Jumla, Mugu, Kalikot and Dolpa of Karnali State.
Crops insured under the Insurance Policy based on the Secondary Index do not suffer physical damage as in traditional policies. In case of a pre-determined situation, the insurance company provides the compensation amount.
For example, an insurance policy stipulates compensation in a district where crops are insured for more than 20 millimeters or less than 10 millimeters of rainfall. Insurance companies should compensate the farmers if they have more than 20 millimeters or less than 10 millimeters in the rainy season. Even if the farmer irrigates the field through pumps or any other method, or even if there is little damage to the crop due to excessive rainfall, the farmer has the right to claim and receive compensation.
To implement such crop insurance, adequate weather stations (Environment Information Center) are required to collect information regarding air and water. Similarly, crop insurance based on seasonal index has also been implemented in Bardiya district of Lumbini.
Expansion of apple cultivation in Jumla:
The number of apple farmers in Jumla increased by 26.31 percent from 14,500 to 18,315 between the fiscal year 2078/79 and 2080/81 alone, according to a study.
A study conducted by The Ritti Foundation, which has been advocating policy for the construction of a prosperous Karnali, on the systemic disruption in jumla’s apple value chain, has shown that the production of apples is increasing along with the farmers in Jumla in recent times. According to the study, 20,511 metric tons of apples were produced on 4,250 hectares of land in Jumla in 2081.
According to the District Agriculture Development Office, Jumla, apples worth Rs 1.36 billion have been exported from Jumla in the last five years.
With the number of farmers engaged in apple cultivation and increasing area of cultivation, both the insurance subsidy and the sale of apple plant insurance will be stopped, ultimately the farmers of Karnali as a whole will suffer losses.
