Kathmandu, The Ministry of Agriculture and Livestock has introduced a revised procedure for providing subsidies on crop and livestock insurance, reducing the percentage of the insurance premium subsidies that were previously available. Under the new guidelines, the standard 80 percent subsidy on agricultural insurance will no longer apply to all, with a scaled subsidy system being implemented instead.

As per the revised procedure, which comes into effect from 1st Kartik 2081, the insurance fee subsidy will range from 50 percent to 80 percent, depending on the sum insured. Policies issued before the end of Ashoj 2081 will still be governed by the previous 80 percent subsidy rule. Moving forward, for insurance sums up to Rs. 50 lakhs, an 80 percent subsidy will still be available. However, for sums between Rs. 50 lakhs and Rs. 1 crore, the subsidy will be reduced to 65 percent, and for sums exceeding Rs. 1 crore, the subsidy will drop to 50 percent.

Agriculture and Livestock Minister Ramnath Adhikari approved the new procedure on Ashoj 16, forming a committee to oversee the implementation of the revised crop and livestock insurance policy. The committee includes representatives from the Department of Agriculture, Department of Livestock, Ministry of Finance, National Planning Commission, Insurance Authority, and Nepal Insurance Association, with the Executive Director of the Insurance Authority serving as member secretary.

The new procedure also introduces collective insurance for agriculture, fisheries, and livestock, requiring applicants to submit requests through one of the non-life insurance companies operating in Nepal. Farmers who benefit from the agricultural insurance subsidy will no longer be eligible for additional insurance-related subsidies from local or provincial governments.

Source - https://beemapost.com