KATHMANDU: The government has revised the subsidy structure for agricultural, livestock and herbal insurance premiums, raising the coverage threshold for the maximum subsidy.
Under the new Procedure on Providing Subsidy on Premiums for Agricultural, Livestock and Herbal Insurance, 2083 BS, effective from Bhadra 1, the government will provide an 80% subsidy on insured amounts up to Rs 10 million. Any amount above Rs 10 million will receive a 50% subsidy.
Farmers will therefore pay only 20% of the premium for the first Rs 10 million of coverage, while they will bear half of the premium for the amount exceeding Rs 10 million.
Previously, the government provided an 80% subsidy for coverage up to Rs 5 million, 65% for Rs 5 million to Rs 10 million, and 50% for amounts above Rs 10 million.
The new procedure also assigns provinces responsibility for implementing the programme through conditional fiscal transfers from the federal government. Insurers must submit policy details to the Nepal Insurance Authority within seven days after the end of each month to claim subsidy payments.
The subsidy will be available only in the province where the insurance policy was issued. Insured persons receiving the subsidy cannot claim another government subsidy for the same purpose and must submit a self-declaration to that effect.
Other provisions, including insured value, premium rates and claim settlement, will continue to be governed by the Agricultural, Livestock and Herbal Insurance Directive, 2079 BS.
