Changing Insurance History

For the first time in the history of Nepal, Lumbini General Insurance has issued an insurance policy worth Rs. 280 million, under the category of Agriculture and Birds Insurance on Bhadra 29, 2070 (September 14, 2013). The policy was issued to Ostrich Nepal Pvt. Ltd. It is largest insurance policy ever issued for the coverage of Agricultural Product (Birds) in Nepal. 700 ostrich were valued to be worth Rs. 280 million by Lumbini Insurance and accordingly the policy was issued. The policy is issued for six months and the premium is 2.62% of the total amount. The policy can be renewed after the duration of six months.

Ostrich Nepal Pvt. Ltd. is located in Rupandehi district and it is going to expand its branch in Dang. Currently there are more than 2000 ostrich with the company and it is helping two farmers of Rupandehi to breed Ostrich.

Though there is provision of 5% premium and 50% subsidy by the government in the premium amount, the insurance of the ostrich is currently done only by the company. Insurance company has provided deductions in the premium. The reason for unavailability of the subsidy by the government may be due to the availability of provision for insurance amounting only to maximum of 10 million. If the company could get subsidy, the revenue generated from it is expected to be more than that from all the exports of the country.