KATHMANDU: The government has reduced the subsidy being provided for agriculture and livestock insurance by 25 percent through the budget for 2021-22.
Though the government had been providing 75 percent subsidy on such insurance premiums and farmers had to pay only 25 percent of insurance premium, the government will now provide only 50 percent subsidy on insurance premiums.
In line with the budget, the Insurance Board has already directed insurance companies to implement this decision of the government.
Earlier last week, the board issued a circular instructing non-life insurance companies to conduct agriculture and livestock insurance business accordingly.
Despite slashing insurance subsidies for agriculture and livestock, the government has introduced a new provision to provide 50 percent subsidy in insurance premium for food storage.