Kathmandu. Sagarmatha Lumbini Insurance Company Limited has issued an “Insurance Policy on Decline in Rice Production Based on the Index of Excessive Rainfall” with the approval of the Nepal Insurance Authority. The term of the policy will be applicable from September 23, 2083 to November 23, 2083.

The insurance policy aims to provide compensation to the farmers of Kailali, Kanchanpur, Dhanusha, Siraha, Sarlahi, Banke, Bardiya, Dang and Kapilvastu districts for the risk of possible damage to paddy production due to excessive rains. Plantsat Seed Innovations Pvt. Ltd. has partnered to issue this policy.

In this policy, the sum insured has been fixed at 1,595 per kattha. On the first day of the issuance of the policy, i.e. on September 23, 2083, about 1,305 farmers have been issued insurance policies and about 3,304 katthas of paddy have been insured. The company has issued all these insurance policies in a single day.

Compensation based on index of excessive rainfall

}

Under this insurance policy, the maximum accumulated rainfall of the prescribed three days is 9 m, not on the basis of the assessment of the damage caused to the farmers individually. m. Compensation will be given on the basis of an index of 0.

{{TAG_OPEN_strong_16}Simple and Automated Claim Payment Process

The key feature of this insurance policy is its simple and automated claim payment process. The farmer will not have to submit a separate claim form, document or claim statement to the insurance company if the eligibility conditions are created for claim payment as per the prescribed index.

The claim amount that is eligible to be paid on the basis of the index will be directly deposited in the bank account of the farmer. This will provide relief to the farmers from the paperwork required in the claim process and the extra time involved.

The insurance policy based on the index will help mitigate the risk of economic loss to the farmers by means of simple, transparent and technology-based process to address the economic risk of decrease in paddy production due to excessive rainfall.