Insurance Association’s decision not to issue Agricultural Insurance unless the remaining 2 Billion Rupees as Subsidy is received
Kathmandu : Nepal Insurance Association has decided not to issue any insurance related to agriculture until the remaining subsidy is received. The association issued a statement on 6 March, 2024 A.D (23rd of Falgun, 2080 B.S), saying that it will not issue the insurance policy until the full insurance fee is received.
The association has said that it will implement the decision from 1st of February-March 2024 A.D (Chaitra 2080 B.S. 2023 A.D, Since 2069 B.S, the government of Nepal has been gradually subsidizing agricultural insurance fees by giving priority to farmers and agriculture.
It has been mentioned in the association’s statement that for the past 10 years, insurance companies have been issuing agricultural insurance policies in accordance with the guidelines of the regulatory body Nepal Insurance Authority, and paying claims for damage in case of any, but the subsidy set by the government is usually received only after 1 year.
According to the association, about 2 billion Rupees remains to be given to the insurance companies in the amount of subsidies set for agricultural insurance fees. According to the Insurance Act, 2079 B.S, the insurance cannot be issued in the form of loan which is why the association has been repeatedly informing the Ministry of Agriculture and Departments regarding this matter.
