Companies agree to resume issuing agri, livestock insurance policies

KATHMANDU: Non-life insurance companies have decided to resume issuing agriculture and livestock insurance policies.

These companies had stopped issuing agriculture and livestock policies since mid-February, citing the government’s failure to release subsidy amounts to companies. According to the companies, the government owes Rs. 2.17 billion to companies as an insurance premium subsidy.

The Ministry of Agriculture and Livestock Development and representatives of non-life insurance companies reached an understanding on Thursday to resume the issuance of agriculture and livestock policies. Minister for Agriculture and Livestock Development, Jwala Kumari Sah, was also present in the meeting.

As per the understanding, the government has agreed to immediately release Rs. 970 million to the companies Based on this understanding, companies will start issuing agricultural and livestock insurance policies from Friday itself, said Nirmal Adhikari, the Information Officer of the National Insurance Authority.

The government provides an 80% subsidy for insuring cattle, fish, and poultry, as well as herbs, trees, shrubs, and crops like grains, lentils, vegetables, mushrooms, fruits, tubers, flowers, sugarcane and oilseeds etc.

Non-life insurance companies collected Rs 1.65 billion worth of insurance premiums under agricultural and livestock insurance over the first 10 months of the current fiscal year, according to the NIA.