Under the provision, each of the non-life insurance companies has to engage in the agriculture insurance business. However, insurance companies in Kathmandu and Bhaktapur are not included on the list.

Board Chairman Phatta Bahadur KC said they had to force the insurers to go to various districts as coverage remained lower than expected. “With this measure, we have planned to spread the agriculture insurance coverage in all 75 districts,” he added. “They must reach out to the districts and are free to extend the coverage in other areas as much as possible.”  

According to KC, although all the private sector insurance companies have engaged in agriculture insurance, state-owned Rastriya Beema Company, a break-away company from Rastriya Beema Sanathan, has not yet entered this business.

The government had failed to utilise much of the amount allocated for subsidising premium to the farmers for insuring their crops and cattle. The government has raised subsidy on agriculture insurance to 75 percent this fiscal, up from 50 percent last fiscal. From this fiscal year, crop insurance has also been included to the list of agriculture insurance while it was just for cattle until last fiscal, according to KC. The insurance companies have already issued policies worth around Rs 600 million compared to Rs 630 million in the whole of the last fiscal. As per crop and cattle insurance directive, maximum insurance amount for cow has been fixed at Rs 150,000 and Rs 125,000 for a buffalo, Rs 80,000 for a yak. The maximum policy amount for buffalo and bull meant for reproduction purpose is set at Rs 70,000, and Rs 40,000 for those used for carrying loads.

Selected districts for insurers

Insurance companies    Districts coverage

Nepal Insurance Company    Darchula, Baitadi, Dadeldhura, Kanchanpur

Rastriya Beema Company    Bajhang, Doti, Kailali

United Insurance Company (Nepal)    Humla, Bajura, Accham

Everest Insurance Company    Kalikot, Dailekh, Surkhet, Bardiya

Sagarmatha Insurance Company    Mugu, Jajarkot, Jumla

LG Insurance Company    Dolpa, Rukum, Salyan, Banke

Alliance Insurance Company    Mustang, Myagdi, Baglung, Gulmi, Syangja

Siddhartha Insurance Company    Manang, Kaski, Parbat, Palpa, Rupandehi

Prudential Insurance Company    Gorkha, Lamjung, Tanahu, Nawalparasi

Sikhar Insurance Company    Chitwan, Makwanpur, Dhading, Nuwakot, Rasuwa

Himalayan General Insurance    Sindhupalchok, Kavrepalanchok, Lalitpur, Parsa, Bara

Premier Insurance Company    Dolakha, Ramechhap, Sindhuli, Sarlahi, Rautahat

NB Insurance Company    Solukhumbu, Okhaldhunga, Mahottari, Dhanusa

Lumbini General Insurance Company    Sankhuwasabha, Bhojpur, Khotang, Udayapur, Siraha

Neco Insurance Company    Taplejung, Panchthar, Ilam, Jhapa, Morang

Oriental Insurance Company    Dhankuta, Sunsari, Tehrathum, Saptari

National Insurance Company    Rolpa, Pyuthan, Dang, Arghakhachi, Kapilvastu