Kathmandu. Although the government has provided up to 80 percent subsidy on agricultural insurance, the access to agricultural insurance has been shrinking continuously since the last four years.
The data published by the Nepal Insurance Authority (NEA) shows that the number of farmers benefiting from the agriculture insurance service has gradually thinned in the last four years.
According to the NRA’s annual report, in the last fiscal year 2081. Non-life insurers had issued 1,62,010 insurance policies in 82 years. Before that, 2080. 1,56,121 in 81 and 2079. A total of 1,88,893 insurance policies were issued in 80 years.
According to the NRA, the sum insured on crop and livestock insurance is also 2079. 80 from 51.10 billion 2081 million. It has shrunk to Rs 36.84 billion in the previous year. FY 2080. The policy was issued for Rs 42.13 billion in FY81.
The total insurance premium collection has also been gradually shrinking in the last three years. Total insurance premium in the last fiscal year 2081. It was 1.70 billion in ’82. Insurance premium collection TAG_CLOSE_span_26 and fiscal year 2080. Rs. 2.02 billion in 2018. Rs. 80. It was Rs 2.31 billion.
This indicates that the insurance system is not shrinking, but has moved away from subsidy-based insurance to real risk-based insurance. The fraud has been curbed after the government implemented the Integrated Information System related to agriculture insurance in coordination with the NRA with the conclusion that the agriculture insurance subsidy has been misused. Apart from this, the distribution of insurance subsidy has also been curbed through the new directive.
According to the data, the government insurance subsidy amount has also been decreasing in the last four years. Fiscal Year 2079. The government had distributed Rs 1.85 billion in insurance premiums. In the last fiscal year, the government subsidy amount has also come down to Rs 1.33 billion due to the reduction in insurance premium. Fiscal Year 2079. The government had provided Rs 1.61 billion as subsidy to farmers in 2018 as insurance premium.
The amount of subsidy has also decreased due to the removal of double insurance, fake insurance policies and unnecessary risk in addition to the reduction in the government budget for the distribution of grants.
Claim payments also decreased:
The number of claims paid and claim payment amount has also decreased significantly. Claim Payment No. 2078. 79 in 37,921, 2079. From 33,128 in 80 to 2080. It has been limited to 23,683 in the year 2018.
Similarly, the claim payment amount is also 2078. 1.84 billion in 79. 1.58 billion in 80 and 2080. It reached Rs 1.42 billion in ’81.
The main reason for
According to the employees of the Insurance Authority, after the implementation of the online agriculture and livestock insurance system, the details of farmers, farmers and livestock are being verified according to various criteria, which has prevented the misuse of subsidy. ”
Earlier, only farmers and insurers were involved in crop or livestock insurance. The insurance authority used to recommend the subsidy amount on the basis of the insurer’s claim. At present, farmers, agricultural technicians, insurers, local governments, insurance authorities and the Department of Agriculture and Livestock Services are also directly involved. Apart from this, the process from proposal to claim has been incorporated into the online digital system, which has reduced the possibility of glitches.
According to experts, the declining participation in agricultural insurance is not a worrying decline, but a sign of improvement. The main challenge now is to reduce dependence on subsidies and make agricultural insurance sustainable through risk management, weather-based insurance and raising farmer awareness.
