Government Disburses NPR 6.30 Billion in Agricultural and Livestock Insurance Subsidies Over 12 Years

Kathmandu: The Ministry of Agriculture and Livestock Development has distributed a total of NPR 6.30 billion in subsidies for agricultural, crop, and livestock insurance over the past 12 years. Of the total amount, NPR 464.89 million was provided under agricultural insurance, while NPR 5.84 billion was allocated for crop and livestock insurance. During the same period, insurance companies underwrote policies worth NPR 185.30 billion, collected NPR 8.19 billion in premiums, and settled claims amounting to NPR 7.28 billion.

Under the newly issued “Procedure for Providing Subsidy on Crop and Livestock Insurance Premium, 2081,” the government provides up to 80 percent subsidy for insured amounts up to NPR 5 million, 65 percent for amounts between NPR 5 million and NPR 10 million, and 50 percent for insured amounts above NPR 10 million. The provision has been effective since Kartik 1, 2081 (mid-October 2024). A high-level committee led by the Ministry Secretary has been formed to oversee the implementation, with representation from the Nepal Insurance Authority and the Nepal Insurers' Association.

Agricultural insurance in Nepal was formally launched in Magh 2069 (2013) after the regulator issued the “Crop and Livestock Insurance Directive, 2069.” Initially, progress was slow, prompting the government to introduce a 50 percent premium subsidy in FY 2070/71, which was later increased to 75 percent. With enhanced policy support and subsidy reforms in recent years, the agricultural insurance program has gradually expanded across the country.