The insurance is briefly explained ,The Agricultural Insurance Policy of Nepal is elaborated by Nawaraj Pandey.

1. Insurance😱 and
agricultural insurance
-Nawaraj Pandey
AFU,FOA 7th batch

2. Introduction
• Risk management strategy
• Legal contrast that transfer risk from stakeholder to
insurance company by paying certain amount of
premium(cost)
• Legal agreement between insurer(बिमक) -isurance
company and insured (बिममत)-individual farmer
• According to agreement insurer provide
compensation and insured provide certain
premium

3. History
Natural/Non-material economy:not standard financial instrument are
not stabilished and material exchange eachother
Monetory economy:Mrket,curency,Financial instrument are
estabilished and exchange the commodity interm of moneytory value
classicial insurance from Babylon,China,Sri-lanka etc normally they
called Bottomry loans
Modern insurance 17-18th century ,Europian country like UK made
the 1st insurance policy
In Nepal,Nepa Mal Chalani Tatha Beema company ltd-2004 is the first
insurance company
And, Crop and livestock insurance directive-2069 BS(2013 AD)
implmentation from 2069-10-1 BS

4. stages of incorporation and
registration
• Aproval from registration of Bank and financial institution
from NRB
• Registration of the office of company through BAFIA-2063
• BAFIA-2063: Bank and financial institution Act-2063
• :- Necesaary for the government to regulate Bank and
financial institutions
• :-Created under supervision of the Central Bank Nepal
• :- Authenticated by house of parliament
• :- Regulated by Nepal Rastra Bank NRB

5. Type of insurance
• Life insurance:- only for human life
• Non life insurance:-other than human it include
Agricultural insurance which further devided into,
• --Livestock>, Fisharis> ,
• Fruit>,1interm of cost( --up to damages, lower premium
and compesation)
• 2 Intem of production ( flowering- fruiting, premium
higher and compensation also higher)>crops
• 🙌🙌🏇🙋
• 🙋👨💼👨🌾

6. Process
• Selection of Insurance
• Proposal form
• Survey of property
• Acceptance of Proposal
• Insurance agreement:-Policy,premium
,compensation ,time durtion ,rights etc

7. Premium and compensation
Premium:-its depend on insurance
company and kinds of insurance
rate of premium are,
Livestock:-5%
Crop :- 5%
Fish :-2%
Fishary pond:-1%
poultry :-1.25%
#commission 15% of total premium
to provide the agent or brokers for
any kind of insurance
• Among the agreement
premium,, government
75% and farmer only 25%
of total amount pay to
insurance company
• Government provide:-
• FS 70/71 provide 50%
subsidy
• FS 71/72 provide 75%
subsidy to premium

8. condition for the compensation
# is allow
• Following Natural disaster,
• 1: Fireing,explosion,lightening
• 2: Earthquake
• 3 Flooding,landslide,drought
• 4 Strong wind,
• 5: Hailstrom,snow,frost
• 6: disease and pest infection
• 7: Lack of oxygen and loss of
ammonia
• 8: Food poisoining
• 9: Toxic substance
• Is not allow
• 1 out of the above diseaster
• 2: Scuide
• 3: pandamic disease like birdflu
• 4 Destory by government and any
legal body
• 5 False detail,Negligense
• Break the law
• Person involve the any kind of war
• dead farther more than 5-6 km
• If frequantly renew is not occur

9. Claim procedure
in case of insured debtor,
Inform within 90 days
Claim form with fully detail
Copy of citizenship and
citizenship of desired person
Certificated of proof relationship
certificated from local level
Insurance claim must be
submitted through the__
District coordination and
monetoring commette
• In case of Livestock and
Crop,Fruit etc
• Inform within 3days for
livestock and 7 days for crops
• gross insurance article
• Certifcated of loss and
technician report to the
company
• Sign with the identity of
animal,
• Certificated from local level
• Laboratory report

10. Compensation
• In case of livestock
• for death,:- at least 90% and upto100%
• fully disabled not died:- 90%-100%
• partially disabled: at least 50%
• Note: the dead body must be bury if not compensation is
missing !!!
In case of Crops,Fruits
Depend on the crop damage if fully damage upto 100%
Incase of farmer death
200000

11. Government strategy
• Insurance company stabilished from 2004 Bs
• Insurance Act 2049 Bs
• Agricultural insurance directive 2069 BS
• Agricultural insurance act 2070/2075
• =-------====---------=
• FY070/71- to FY 71/72 = no.of insurance farmer increases by
401%
• Fy071/72 to 73/74 increases by 89%
• Fy073/74 to74/75 increases by 52%
• Farmer( ककसान,गोठालो, बिमा insurance started from 2075:- for
>1 Year premium is 100 and <1 year premium is 50
• NOTE Only for two year!!! Agriment amout 200000

12. Problems
• Limited scope of business
• Lack of awarness
• lack of loyality and sincerity
• Geographic condition
• Lack of knowledge
• Problem of capital generation

13. Implementation strategy,
• USAID frame work,VISA model( Village Insurance
Saving Association)
• NARC/MOAD/SOCIOECONOMISC frame work
model, combination research 2015-2019 Ad
finding model ,Malawi groundnut weather index
insurance 😊😊😍😍

14. VISA model