Government Allocates Rs 80 Million Subsidy for Agricultural Insurance

Kathmandu – The Ministry of Agriculture has disbursed Rs 80 million to insurance companies through the Nepal Insurance Authority to subsidize agricultural insurance fees. This allocation is part of the government’s initiative to support farmers and livestock owners by covering a significant portion of their insurance premiums.

The budget speech had outlined an arrangement for the government to provide up to 80 percent subsidy for agricultural and livestock insurance fees. However, delays in implementation by the Ministry of Agriculture and Livestock have disrupted the process, leaving insurance companies unable to receive fees on time. This has, in turn, affected their willingness to provide agricultural insurance services.

In response to these challenges, the Nepal Insurance Authority recently introduced a provision requiring provincial district office recommendations for subsidy approvals. The ministry has also approved a new procedure to streamline the subsidy process. Under this system, individuals or firms must apply for subsidized insurance before the subsidy is granted.

The revised procedure classifies subsidies based on the insured amount. Policies valued up to Rs 5 million are eligible for an 80 percent subsidy, while those between Rs 5 million and Rs 10 million receive a 65 percent subsidy. Insurance amounts exceeding Rs 10 million qualify for a 50 percent subsidy.