Farmers’ awareness and perception about Livestock insurance in Dhanusha District, Nepal

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.