Fiscal year 2010/11 - Poverty Alleviation Fund, Nepal

LIVESTOCK INSURANCE PROVIDING
BOON FOR COMMUNITY
By Umeed Bagchand
Success Story
We have heard a lot about life insurance. But, the poor and
backward communities of Achham district in far-west region are
these days insuring their livestock. Just as sudden demise of
household head pushes families in financial troubles, sudden
death of livestock reared on loans taken from community
revolving fund can also land the families into troubles. Hence,
through livestock insurance poor people are safeguarding
themselves from possible risks and losses. And their initiative
has become exemplary for others as well.
In a place where people were facing difficulties to fulfill days
end, buying insurance cover for livestock was not an easy task.
But thanks to PAF’s initiatives, community people are enjoying
the facility with relative ease. PAF pushed for livestock insurance
mainly because the prices of livestocks were skyrocketing
and any loss of such expensive wealth would only worsen the
situation for the poor. Besides, as risks associated with livestock
remained high in remote districts, many community people were
disenchanted to pursue livestock rearing. But thanks to PAF’s
endeavor, community people decided to work for the introduction
of this safety net, instead of turning away from the business.
The credit of introduction of this facility goes to the local
network of community organizations though. In a bid to avoid
the loss and safeguard community members during loss,
the network organized trainings to the CO members. “Rama
Roshan Development Society also supported us immensely
in introducing livestock insurance,” said Nain Bahadur BC,
secretary of the CO network.
The network has mobilized respespective communities involved
in livestock rearing to insure their animals. For the cover, CO
members sign an agreement with Livestock Insurance CO. PAF
has facilitated them by layin down detail procedures on how
livestock insurance should be implemented. The manual is pretty
similar with norms of life insurance. Separate provisions have
been put in place for insurance of big and smaller livestock. The
initial cost incurred while registering for the livestock insurance
is borne equally by the members and PAF. The cost of renewal,
however, needs to be shouldered by the livestock owners
themselves.
If a livestock died due to natural reason, the insurer CO
compensates to members 80 per cent of its total cost price.
“Insurance has been arranged considering the overall needs
of the VDCs,” said Pramod Joshi, PAF’s Portfolio Manager for
Achham district.
The introduction of the service has greatly relieved the farmers
who used to suffer the most from loss of livestock. Many farmers
are already enjoying the benefits from this financial cover. As a
result, people who made mockery of the service in the beginning
too have started to take the service. “The motive of the service
is not to earn profit, but to support the CO members that are
pursuing livestock rearing,” said Khamba BC, a member of the
CO that introduced the service with PAF support.
Mangalsen CO that is formed by 25 PAF COs is implementing
the livestock insurance service. “The demand for the service
has increased as more community members started to realize
its importance,” said Jung Bahadur Nepali, Chairman of
Mangalsen CO.
(Bagchand is a BBC Correspondent)
ANNUAL PROGRESS REPORT (2010/2011) 31