The YSESF was established by the government of the UCPN (Maoist) some four and half years ago as a vehicle to provide unsecured low-interest loans of up to Rs 200,000 to raise access of jobless youths to credit and promote entrepreneurship.
Since its inception it has made it mandatory for borrowers to insure their life as well as the businesses they set up using the loan amount acquired from the YSESF. Although no drastic change has been made to life insurance scheme, the latest amendment made to the youth self-employment policy has widened the coverage for agriculture related businesses set up by borrowers.
“The amended policy was approved by the board of directors on Friday. It will come into effect soon,” a high-ranking official of the Insurance Board told Republica on condition of anonymity.
As per the revised policy, claimants can demand compensation of up to 100 percent of the sum insured if crops and livestock they are growing or rearing die due to spread of diseases. Likewise, in the case of fish farming, death of fishes resulting from lack of oxygen and presence or ammonia or poisonous substances will be covered by the insurance policy.
The new provisions were included in the policy after borrowers started complaining that the insurance policy they had purchased did not cover losses of cattle or crops due to spread of diseases.
Earlier, the youth self-employment insurance policy used to cover losses emanating from natural disasters and acts of hooliganism or terrorism. “These conditions were fine for business units like shops but not for those who were engaged in agricultural sector,” an official of YSESF said.
However, this does not mean compensation will be granted for any type of loss. For instance, the policy does not provide coverage to losses resulting from theft of insured products. Also, losses that had stemmed from carelessness or personal enmity will not be borne by the insurance company, states the policy, premium of which are paid by the YSESF.
Currently, the YSESF allows borrowers to start any type of business from rickshaw-pulling and farming to setting up of small industries and traditional skill-based enterprise upon undergoing a formal training.
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