The new arrangement will make agro insurance services available in 73 districts. Beema Samiti has not made it mandatory for non-life insurance companies to show presence in Kathmandu and Bhaktapur where their concentration is already height.
The insurance sector regulator has allotted three to five districts to each insurance company to promote their schemes and sell policies to local farmers.“
"We have instructed non-life insurers to arrange service providing mechanism across the country. There can be high concentration in some districts, while some many not see presence of single company at all," Raju Raman Poudel, director of Beema Samiti, said. "The new arrangement will help to overcome the drawback."
He further added that the arrangement does not mean that a company cannot go to other districts.
The government had endorsed the crop and livestock insurance scheme in June 2013 offering 50 percent premium subsidy to farmers. The government has increased such subsidy to 75 percent in the current fiscal year.
However, the insurance scheme has not been able to draw much interest from farmers due to reluctance of insurance companies to sell policies, low presence of insurance companies in rural areas, and lack of knowledge and awareness regarding the benefits of insurance.
According to the Beema Samiti officials, the companies will also be responsible for addressing the concerns and grievances of farmers regarding the insurance service“. "The aim of allotting districts for insurance companies is to make them responsible for promoting agro and livestock insurance services. This will also help insurance companies to expand their busine”s," added Poudel.
Ministry to provide office space to insurers
KATHMANDU (REPUBLICA): Ministry of Agricultural Development (MoAD) has decided to provide office space in its district agricultural development offices and district livestock development offices for insurance companies to open help desk for promoting crops and livestock insurance services in rural areas.
According to officials of MoAD, it will allow interested insurance companies to open help desk in district offices“
"Insurance companies are still reluctant to sell crops and livestock insurance policies to farmers as it is relatively a new business for them. They are wary of unknown risks associated with this business.
The decision to allow insurance companies to open help desk in district offices is a part of cooperation between the government and private sector to promoting crop and livestock insurance," Sunil Kumar Singh, senior agri economist at MoAD, told Republic“. "Technicians and experts available at our offices will help both insurers and farme”s," said Sing“. "Since farmers come to our office to find solution to their problems, it will be easier for insurance companies to sell their insurance polici”s," added Singh.
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