Abstract :
A study on farmers' awareness and perception about livestock insurance was conducted in
Janakpur sub metropolitan city of Dhanusha district, Nepal with a sample of 120 households, 60
insured and 60 non-insured households through interview schedule, focus group discussion and key
informant interview. Results revealed that the majority of the respondents' altogether (83%) have
knowledge about livestock insurance. About 82 % among non-insured and 32% among insured
respondents were not acquainted with premium and subsidy schemes. Around 60% of insured
respondents stated that Insurance Company as primary source of awareness while 69% of
non-insured respondents stated Radio/TV as main source of awareness. Farmers were found well
satisfied with current valuation techniques of animals and the subsidy policy of the government but
were disappointed with claim procedure; requirements of documents and the time taken by
insurance companies to settle the claim. Diseases were found to be a major risk associated with the
farmers. Documentation procedure (p=0.04), membership by the farmers in any organizations /
groups (p=0.034), farmers contact with extension personnel (p=0.025) and knowledge on premium
subsidy (p=0.005) were perceived as key factors influencing the adoption of livestock insurance.
Illiteracy and limited awareness about the available facilities and publicity of schemes were found to
be major constraints for not joining the livestock insurance. Policy makers should focus on proper
mechanisms for publicity of the premium and subsidy schemes and finding a proper channel to ease
the claim procurement process to increase the adoption of livestock insurance.
Keyword :
Documentation, Livestock insurance, Premium, Subsidy.