Shiva Sundar Ghimire1*, Govinda Prasad Sharma2 and Prakash Acharya3

1 Department of Agriculture, Lalitpur

2 Ministry of Agriculture and Livestock Development, Kathmandu

3 Seed Quality Control Center, Lalitpur

* Corresponding E-mail: ghimiresss@yahoo.com

* Orcid ID: https://orcid.org/0000-0002-5946-2600

Abstract
Farm enterprises in Nepal are becoming riskier due to variable returns originating from production, price, and markets fluctuations. These fluctuations make farming vulnerable that originate from climatic hazards like drought, flood, erosion, heavy rainfall, insect pests and diseases. Agriculture insurance safeguards farmers against income shocks caused due to different perils in agriculture. Despite an encouraging trend in agriculture sector, insurance in crop component including in horticulture is very limited and steady. The share of crops and livestock insurance is 4.87 and 95.13 percent, respectively. Within crops, horticultural commodity ranks the highest by number in category. Three types of insurance schemes, namely cost-based, output-based and weather index-based are in practice. While insurance policy for perennial crop is easier, policy implementation is complex in seasonal crops such as vegetables. The dynamics of insurance companies, availability of agricultural technicians, timely disbursement of claims to the insured, access to insurance service, and the domain for agents largely influence the adoption of insurance in horticultural commodities. We recommend expanded access for insurance service at local level assuring service in remote areas, capacity enhancement of local government, awareness for farmers, crop domain expansion including revision in the existing policy for promotion of insurance in horticultural crops in Nepal.

Keywords: Horticulture, Insurance, Loss, Claim, Cost, Output, Weather index