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Agricultural insurance in confusion as the government does not provide subsidy
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The insurance companies have stopped the sale of agricultural insurance articles and payment of claims as the government did not provide the amount for the subsidy in agriculture insurance. In the statement issued by the companies, they have only warned of stopping the sale of agricultural insurance and payment of claims. However, internally, the companies admit that they have stopped paying claims along with the sale of insurance policies.
The companies issued a statement on this May 10 and warned that if the funds for the subsidy are not received immediately, they will also stop the payment of claims. By re-issuing the statement issued earlier on Wednesday, the Nepal Insurance Association demanded immediate payment of the subsidy.
'For the past 10 years, insurance companies have been issuing agricultural insurance policies according to the guidelines of the regulatory body Nepal Insurance Authority, and paying claims for damage in case of damage, but the subsidy set by the government is usually received only after 1 year,' the statement said, 'The government of Nepal has increased the agricultural insurance fee. About two billion remains to be given to insurance companies. The insurance company is at high risk because the Nepal government has not received the above subsidy amount, despite repeated verbal and written requests to the Ministry of Agriculture and Animal Husbandry, the Department of Agriculture and the Nepal Insurance Authority Due to the circumstances, there has been a problem in the cash flow of insurers. Therefore, we request through this press release to provide the subsidy amount to be paid by the Government of Nepal as much as possible according to the decision of the plenary meeting held on 081 Baisakh 10th of Nepal Bimak Association, the umbrella organization of non-life insurance companies. "Otherwise, we would like to inform all concerned bodies that due to the lack of cash flow, it will be difficult for insurers to pay claims," the statement said Instructions have been given. Earlier, the insurance companies had issued notices saying that they would not sell insurance policies because the amount for subsidy in agriculture insurance did not come from the government. On Wednesday, Bimak Sangh issued a statement reiterating the same old opinion. After that, the authority has instructed not to stop the sale of insurance policies and the payment of claims.
The authority has said that it has taken serious notice of the announcement on agricultural insurance issued by the Nepal Insurance Association on May 12, 2018. "The government of Nepal is coordinating and taking initiatives with the Ministry of Agriculture and Livestock Development to make the agriculture and livestock insurance business reliable and trustworthy and to provide the pending subsidy amount from the Nepal government as soon as possible," the directive of the authority said, "while the funds will be received in the near future. It is requested to immediately withdraw the statement and start the agricultural and livestock insurance business and payment of claims.''
