Kathmandu. Karnali: Agriculture insurance has shrunk in Karnali province after the Commission for the Investigation of Abuse of Authority (CIAA) launched an investigation into the misuse of government grant money.
After the investigation of the CIAA, it has been seen that the income of agricultural insurance fees in Karnali Province has been shrinking continuously for the last few months. According to the NRA, karnali state has seen the biggest negative impact on agricultural insurance revenue.
The current fiscal year 2081 bs is examined by examining the data published in the monthly bulletin Insurance Reflection. As of May 19, karnali’s income from agriculture insurance has shrunk by 40.06 percent. Last fiscal year 2080. The collection of insurance fees has decreased as compared to mid-May 2018.
Earlier, income from agriculture insurance in Karnali had shrunk by 91 per cent by mid-April. The number of insurance policies has also decreased by 62 percent.
The Government of Nepal has been providing 80 percent subsidy on insurance fees to small farmers for agricultural insurance. Apart from this, the Karnali state government has also provided an additional 20 percent subsidy, so agricultural insurance is available free of cost for the farmers of Karnali.
Despite this, it can be assumed that there is a problem in agriculture insurance in Karnali due to the shrinking of agricultural insurance in Karnali.
According to the Insurance Authority, the non-life insurer collected a total of Rs 645.6 million till May last fiscal year, but this year it has collected only Rs 387 million. If the data released by the NRA regarding agricultural insurance is realistic, then the shrinking of agricultural crop insurance in remote areas like Karnali is a matter of concern.
After the investigation of the CIAA, the misuse of agricultural insurance subsidy may have been controlled and it may have brought out the real picture.
According to Shikhar Insurance, which has been selling agricultural insurance in Karnali State, the agricultural insurance has been affected due to policy complications after the investigation of the CIAA and the AUTHORITY.
Shikhar Insurance has clarified to Gyanendra Shahi, a member of the House of Representatives from Karnali, that it could not issue the insurance policy as there was confusion regarding insurance compensation due to the pendency of the CIAA and the government did not pay the grant amount.
The Development Agency has also provided technical assistance for apple cultivation insurance program based on seasonal index in Karnali State. Under the seasonal index-based insurance, the farmer can claim compensation if there is no actual damage to the crop, but the weather is measured according to the pre-determined conditions. The insurer should compensate the farmers on the basis of the index without assessing the loss of crops.
According to the NRA, the collection of agricultural insurance fees has also decreased at the national level. Compared to the first 11 months of the last fiscal year, it has decreased by 16.34 percent to Rs 1.50 billion. The collection of agricultural insurance fees at the national level may have decreased after the Ministry of Agriculture implemented the procedure related to insurance subsidy on the basis of insurance.
