Kathmandu, Mar. 25
Sagarmatha Lumbini Insurance Company (SALICO) Limited
has launched an index-based milk production insurance policy to protect farmers
from potential losses in milk yield of cows and buffaloes caused by rising
temperatures.
The new insurance product is launched in technical
collaboration with PlantSat, a technology-based Nepali digital insurance
company.
The company said in a statement that the policy will
be calculated based on daily maximum temperatures recorded over a 150-day
period, from the fourth week of April to mid-September this year.
The insurance is based on heat stress caused by
temperature increases and specifically covers reductions in milk production.
CEO Chanki Chhetri said the scheme targets cattle
farmers, groups and cooperatives in Kanchanpur, Kailali, Bardiya, Banke, Dang,
Kapilvastu and Chitwan districts. The policy is structured around predefined
temperature thresholds.
So far, a total of 1,627 cows and buffaloes owned by
farmers affiliated with various cooperatives and groups have been enrolled in
the scheme. The policy has been approved by the Nepal Insurance Authority (NIA)
and reinsured through Nepal Reinsurance Company (Nepal Re).
Suman Ghimire, founder and CEO of PlantSat, said
compensation will be provided only when actual temperatures exceed the
predefined threshold based on recorded data.
The policy uses an index-based trigger system to
determine eligibility for claims, enabling a transparent and faster claims
process, according to agriculture department head Umesh Dhakal.
Official temperature data from the Department of
Hydrology and Meteorology Nepal will be used. Once the trigger level is
reached, the insurer will initiate the claims process. Claims department head of
the company Subhash Dixit said payments will be made electronically directly
into the beneficiaries’ bank accounts within seven days of receiving the index
data from the relevant authority.
Published in The Rising Nepal daily on 26 April 2026.
No comments:
Post a Comment