Kathmandu, July 27

The Ministry of Agricultural Development (MoAD) released Rs 106.97 million to the non-life insurance companies engaged in the agriculture insurance business as the premium subsidy in fiscal 2014-15.

Non-life insurers had sold crop and livestock insurance policies worth Rs 2.06 billion during last fiscal, of which the MoAD bears 75 per cent of the premium amount of the insurance. Of the total insured amount, Rs 142.86 million was collected in premium. Of this, 94 per cent of the amount was for livestock insurance, while six per cent for crop insurance, according to MoAD.

Insurers have settled claims in crop and livestock insurance worth Rs 57.34 million in fiscal 2014-15, according to MoAD.

Insurance Board — the insurance sector regulator — has already directed 17 operational non-life insurance companies to expand their services and fixed working districts for each non-life insurer.

The government had earmarked Rs 60 million to subsidise insurance premium in last fiscal year. The Ministry of Finance, later released additional amount following overwhelming response in the crop and livestock insurance.

As per provision of Crop and Livestock Insurance Directive 2012 issued by Insurance Board, farmers can enjoy additional 15 per cent discount on government provided subsidised amount if they insure through cooperatives. This means farmers opting to insure their crops or livestock through a cooperative get 90 per cent discount on premium.