Private insurers fail to attract livestock farmers in Kavre

MADHUSUDAN GURAGAIN

BANEPA, Oct 9:

Farmers in Kavre district are showing reluctance to buy livestock insurance policies offered by privately-owned non-life insurance company. They are buying insurance policies from community-run livestock insurance program instead.

Though the government has announced subsidy on insurance premium for policies bought from private insurers, the statistics of District Livestock Services Office (DLSO) shows that farmers have bought insurance policies for only around 10,000 cows and water buffaloes. Around 59 percent of them have been insured through community-run livestock insurance program. Similarly, 40 percent of them have been insured through Agricultural Development Bank. Only a handful of farmers have bought insurance policies from private insurer.

Conservative estimate shows there are 100,000 cows and water buffaloes of improved breeds in the district. Kavre is regarded as the largest milk producers in the country.

According to DLSO, Lumbini General Insurance Company, which is the only insurance company selling livestock insurance policy in the district, has so far sold livestock policies to insure 26 cows and 32 water buffaloes.

Deepak Prasad Paudel, coordinator of District Livestock Insurance Committee, said factors like complex claim settlement process and the need to provide commission for agents might have discouraged farmers from buying policies offered by private companies.

The informal community-run livestock insurance program was launched in the district some 15 years ago after farmers started facing huge loss with the death of their cattle. The program is promoted by local farmers´ cooperatives, milk farmers´ cooperatives and community organizations.

Three branches of Agricultural Development Bank -- in Banepa, Panchkhal and Dhulikhel -- have insured a total of 4,073 cattle which were purchased through its loan investment.  

(Source: Republica)