11 September 2024, Kathmandu
The Madhesh Province government has announced plans to allocate NPR 20 million in additional agricultural and livestock insurance subsidies, following an interactive session with the Nepal Insurance Authority.
Nepal Embraces Insurance Transformation
The move is part of a broader effort to expand insurance coverage in the province and address concerns about the lack of follow-up by insurance companies.
Chief Minister Satish Kumar Singh expressed the province’s intention to explore implementing home and accident insurance programs, similar to those already in other parts of Nepal. He emphasized the need for clear communication of insurance terms to policyholders and called for stricter monitoring of insurance agents and surveyors.
Nepal Insurance Authority Chairperson Surya Prasad Silwal proposed a significant shift in the approach to insurance subsidies, suggesting that grants be converted into insurance mechanisms. Silwal argued that insurance is not a complex concept and that citizens can afford coverage even with small lifestyle changes. He emphasized the importance of insurance as a tool for managing risk and financial uncertainty.
The event saw participation from provincial officials, insurance company executives, and representatives from various agencies. The Nepal Insurance Authority’s Director Sushildev Subedi highlighted the crucial role of provincial governments in developing and expanding insurance services.
This evolving approach towards insurance marks a significant development for risk management in Nepal’s agricultural sector. By transforming grants into insurance, the government aims to provide more sustainable and comprehensive protection for farmers and livestock owners.
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