Four non-life microinsurance companies authorized to offer agricultural insurance with subsidy benefits

KATHMANDU, NOVEMBER 19 : Four non-life microinsurance companies in Nepal will now be able to provide agricultural insurance services. As per the Crop and Livestock Insurance Premium Subsidy Guidelines 2081, issued lately  by the Ministry of Agriculture and Livestock Development; Nepal Micro Insurance Company Limited, Protective Insurance Company Limited​​​​​​​, Star Micro Insurance Company Limited​​​​​​​ and Trust Micro Insurance Company Limited​​​​​​​ have been authorized to operate in the agricultural insurance sector. Currently, there are seven microinsurance companies in Nepal,  the said four of which are related to non-life insurance. These four will be eligible to provide agricultural insurance

In discussions regarding agricultural insurance operations, companies have been urged to build the necessary infrastructure, said Nirmal Adhikari, the Nepal Insurance Authority's information officer. “We have instructed the companies to arrange software, technical resources, agents, and conduct policy analysis, among other preparations needed for agricultural insurance,” he stated. Once the infrastructure is in place, the companies will be permitted to begin offering insurance services.

Currently, there are seven microinsurance companies in Nepal, four of which are non-life insurance companies. These four will be eligible to provide agricultural insurance.

A month back, discussions were held between the regulatory Authority and these companies, during which they were advised to prepare the required infrastructure.

According to the Authority, these institutions will be authorized to sell agricultural insurance policies with a coverage limit of up to 5 million rupees. Under the guidelines for providing subsidies on crop and livestock insurance premiums, the policies covering amounts over 10 million rupees will receive a 50 percent subsidy on premiums. Those covering between 5 million and 10 million rupees will be eligible for a 65 percent subsidy, while the policies covering less than 5 million rupees will qualify for an 80 percent subsidy.