Abstract

Author:
Swotantra Dangi

Doi: 10.26480/bosoc.01.2024.52.56

This is an open access article distributed under the Creative Commons Attribution License CC BY 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Livestock enterprise is prone to various diseases, accidental death and natural calamities. The agriculture & livestock insurance system was developed in 2069 B.S to promote and develop this sector in Nepal reducing risk in agriculture & livestock sector. The government provides an 80% subsidy on the insurance premium to motivate farmers to insure their livestock species and agriculture product and help to enhance productivity & reduce the poverty. To access the status of subsidy and claim ratio and other relevant parameters, the 14 non-insurance companies located in Kathmandu were selected purposively for data collection. The study suggested an increasing trend of sum insured amount, premium, subsidy and claim paid. The average subsidy amount was 620.0413 million. The least subsidy amount was found to be min 5.646187 million in year 2070-71 while the highest subsidy amount was 1407.618 million in year 2079-80; however, great challenge remains on government part for proper design, planning and subsidy implementation to promote equality, access credit to farmers and efficient reach to target farmers. Regarding claim ratio, the average claim ratio was found to be 65.36%. The least claim ratio was observed 45% in the year 2077-78 while the highest claim ratio was observed 105% in year 2070-71. On an average, only 65% of premium earned by insurance companies are used during claim settlement in livestock insurance 10 years period. Thus, the proper design, planning and implementation of subsidy and timely claim payment to the farmers are essential for success of livestock insurance program in Nepal.