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Insurance Coverage for Lemon and Orange Farming

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Insurance Coverage for Lemon and Orange Farming
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June 5: The Insurance Board of Nepal has prepared separate drafts of insurance coverage for lemon and orange farming. The drafts have been approved by the Board of Directors of IBN. Deputy Director of the board, Kundan Sapkota, informed New Business Age that the insurance coverage will come into effect once the board issues a circular to the insurance companies regarding this decision. He added that the farmers can now on purchase insurance policy for their products (fruits) as well as plants.

The insurance will cover the losses caused by fire, lightening, earthquakes, floods, accidents and loss due to pests and diseases.

Farmers can also avail accidental death insurance worth Rs 200,000 under this. However, the insurance will not cover casualties of war, encroachment, and loss of farming due to civil war. Likewise, loss due to the negligence of the farmer and their family will not be compensated.

The insurance amount will be determined on the basis of the number and price of plants (orange, lemon), production rate. The insurance amount should be certified by agriculture knowledge center of the district or government office related to agriculture.

The farmers will have to submit the 5 percent insurance premium of the insured amount. Similarly, Rs 100 should be paid yearly for accidental death insurance.

In order to avail the insurance coverage, the plants should have to be planted between May 29 to August 31. After a year of plantation, farmers will be able to claim the insurance. The insurance coverage will remain valid as long as the plants bear fruits.

To claim the insurance, farmers will have to inform the insurance company about the loss within 24 hours and they should make a formal approach to make the claim within a week.

According to the insurance policy, farmers can claim the insurance if the loss is more than five percent. The company will pay up to 90 percent of the actual damage.


 

 

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