In Nepal due to the lack of protection towards the agricultural sector, the attraction towards the agricultural occupation is continuously decreasing. In spite of scope and possibility, the peasants are not able to progress in this sector because of the lack of knowledge and practice of facing the risk of investment in this sector.But to protect the farmer’s investment, the insurance companies have come up with various plans for securing the farmer’s investment in the agricultural sector.
Under the agricultural insurance, animal husbandry, fish farming as well as paddy, vegetable, fruits farming can also be insured. After taking this policy, the farmer is compensated by a sum equal to the loss caused by the fire, natural calamities (earthquake, flood, landslide, and storm), disease, pests etc. For making the agricultural sector well managed and modernized, agricultural insurance should be taken.
If you are having a fish farm, then under government subsidy the fish insurance can be taken. To secure oneself from the probable financial loss from the fish farming business, the fish insurance can be taken. For the fish insurance, the government has been providing a subsidy of RS 47 lakhs 49 thousand. As per the statistics of the insurance board, until the end of last financial year, companies have even drawn the policy of RS 29 crore 58 thousand of fish insurance too.Comparing to the last year, this sum is 72 % higher.
In last financial year, insurance companies had issued the insurance plan of RS 16 crore 82 lakhs. Similarly that year, the insurance companies were able to earn RS 63 lakhs 32 thousand by fish insurance.In that period, the companies had even paid the claim of 12 lakhs 10 thousand. Out of total issued insurance policy, the part of fish insurance is 5%.Last year too, the portion of fish insurance was in the same proportion.
To secure the labour of peasants, the government has made the provision of crop insurance. There are many risks associated with the crops too like harm due to the landslide, flood, hailstorm, etc. for which farmers should necessarily take the crop insurance.
As per the statistics of the Insurance board, in last financial year, insurance companies had taken the policy of RS 43 crore 87 lakhs of crops. This sum is three times the sum of last year. In the last financial year, the insurance companies were able to take the policy of RS 14 crores, 69 lakhs of crop insurance. In the same period, the insurance companies had collected the total premium of RS 2 crores 16 lakhs as well as paid the claim of 97 lakhs 39 thousand. Similarly, in the same period, the government is seen to have distributed the subsidy of 1 crore 63 lakhs. Out of total issued policy of agriculture insurance, crop insurance does have 7 % of the part. In a previous financial year, the part of crop insurance was just 5%.
Live stocks insurance
Peasants are seen to have been interested towards the livestock insurance too. Out of total agricultural insurance policies issued by the companies, the portion of livestock insurance seen to be maximum. Last year, the insurance companies issued the livestock insurance policy of 4 billion 7 hundred million. This was 89% higher than the previous year.In the previous financial year, 2 billion 4 hundred 70 million of agricultural insurance policies were issued. In the same period, the companies were able to collect the insurance premium of Rs 23 crore 29 lakhs from the livestock insurance policies but had to pay the claim of RS 14 crore 60 lakhs. In the same year, the government distributed the subsidy of RS 17 crore 47 lakhs for the livestock insurance policy. Out of total agricultural policy issued by the companies, on the basis of premium collected the livestock insurance policy covered the portion of 79%. This portion was 78% last year.
Last year the companies did the bird insurance of 56 crores 44 lakhs. This amount is 43% higher comparing to the last financial year. In the last financial year, companies had issued the insurance policies of birds of 39 crores 39 lakhs. Similarly, the bird insurance policy was able to collect a premium of RS 1 crore 57 lakhs of insurance premium while paid the insurance claim of RS 25 lakhs 51 thousand. In the same period, the government is seen to have distributed a subsidy of Rs 1 crore 18 lakhs.
Importance of Agricultural Insurance
Insurance is a kind of financial security. Agricultural insurance secures the farmer’s property and investments. The objective of agriculture insurance is to secure the farmer’s investment. Therefore, to attract the farmers towards it m, the government has been providing the subsidy of 75%. By paying the remaining 25%, peasants can secure their investment.
Since some year, the farmer’s attraction can be seen to have been increasing towards the agriculture insurance. Burt still, in all plans of agriculture insurance, the access of farmers cannot be seen. Therefore through the concept of agriculture insurance plan, brought about by targeting the low earning class, to encourage the farmers to take the agriculture policy, the government has been disbursing the subsidy.
Even though the government has been giving the subsidy, the access of the peasants cannot be seen to the satisfactory level. Despite the various training, lack of coordination between the interested groups and awareness in the agricultural level is clearly observable. This has resulted in the ineffective access of the farmers towards the agriculture insurance.In spite of 75% of the subsidy, lack of coordination and public awareness program seems to be the major cause.
Agriculture Insurance Company’s share
The insurance board has made the agriculture insurance compulsory sending the companies to the villages specifying the districts. But some companies are not seen to be attracted towards the agriculture. On the basis of policy amount, out of total issued agricultural insurance, the share of Rastriya Beema sansthan is 44%. The oriental insurance, national insurance’s portion is less than 2%. But NLG insurance company’s share is the highest of all, 29.41%. Likewise, the share of Siddhartha Insurance is 15.88%. The share of Shikhar Insurance is 9.52%.