Kathmandu. The process of providing subsidy for agricultural crops and livestock wealth insurance is cumbersome and lengthy, leaving the real farmers in trouble.
In order to prevent irregularities in agricultural insurance, the long process of recommendations, research and grant approval of various levels has to be in a state of uncertainty whether the grant will be approved by the insured or not.
According to the Working Procedure 2081 BS, after the farmer applies for insurance, the insurance company will issue an insurance policy by taking 20 percent insurance fee from the farmer. According to this provision, only after the issuance of the policy, the non-life insurer will start the process of receiving 80 percent of the insurance premium from the government.
In order to get the recommendation of the grant, in the first phase, the details of the insured farmers should be obtained from the office looking after the agriculture, fisheries and livestock sectors at the district level of the province. After receiving such a recommendation, a grant application should be submitted to the Nepal Insurance Authority. After the NEA examines the application, it is submitted to the Crop and Livestock Insurance Grant Management Committee through the Department of Agriculture and Livestock.
The committee issues recommendations for the grant only when the grant is eligible after examining all the details and evidence of the application and the insurance proposal. Only in the case of insurance policies recommended by the committee, the AUTHORITY provides the grant amount to the non-life insurer.
In this way, the insurance policy is issued before the subsidy is ensured through crop and livestock insurance, so there is a risk of cheating the insured farmer in case the policy is rejected. In case the subsidy is rejected, the farmer himself has to bear all the expenses of the insurance.
There is a problem when the insured does not have any information about the insurance policy that the insured will get information immediately about the rejection of the insurance subsidy. Although the insurance policy has been issued, if the subsidy is not approved after the investigation, the farmers have to suffer financial losses, so a system should be prepared to inform the farmers who have not approved the subsidy.
Can also get claim payment:
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 insurance information. But the farmers have not received the payment within this time. Due to the delay in payment, the insured people are facing financial crisis due to lack of compensation on time.
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