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Started 2 weeks ago · Updated 1 week ago

Auditor General Recommends Scientific Overhaul of Agricultural Insurance Premiums

The Office of the Auditor General has recommended that the government adopt a more scientific and predictable system for agricultural insurance premiums, citing discrepancies in subsidy payouts and increasing fiscal liability. The audit revealed significant gaps between insurance providers' claims and verified amounts, necessitating structural improvements and technological integration to manage the growing sector.

• The audit found that an insurance company claimed Rs 4.72 billion for over 7,000 policies, but after verification by the Department of Agriculture, the approved sum insured was reduced to Rs 1.88 billion.
• Despite being eligible for nearly Rs 100 million in subsidies, only about Rs 8.8 million was disbursed to the insurance company due to verification discrepancies.
• The Department of Livestock Services disbursed over Rs 1.43 billion to the Nepal Insurance Authority for premium subsidies in the current fiscal year.
• The total sum insured for livestock, fisheries, and poultry reached nearly Rs 35 billion, with total premiums exceeding Rs 1.58 billion, indicating a growing financial burden on the state.