https://doi.org/10.62249/jmds.2013.2460

Adoption of Livestock Insurance in Ratnanagar Municipality of Chitwan District, Nepal

¹ Kamal Regmi, ¹ Srishti Pokhrel, ¹ Shreya Aryal, ¹ Pravesh Gautam, ² Utshav Pandey

¹ Paklihawa Campus, Institute of Agriculture and Animal Science, Tribhuvan University, Nepal
² Lamjung Campus, Institute of Agriculture and Animal Science, Tribhuvan University, Nepal
Corresponding author: Utshav Pandey, email: utshav.pandey@lac.tu.edu.np

The government of Nepal has prioritised insurance in recent years. However, adoption remains very low, with more people practising livestock insurance compared with crops. Thus, a study was conducted regarding the determinants affecting the adoption of livestock insurance in Ratnanagar Municipality of Chitwan district, Nepal. Sixty insurers and 60 non-insurer households were surveyed through multistage sampling from ward numbers 03, 08 and 09 via structured interview schedule. Descriptive study was conducted to determine the characteristics of sample households and risk management strategies used by farmers. The indexing technique was applied to assess the risk associated with production and logistic regression model was used to determine various determinants affecting adoption. The results revealed that disease and parasite incidence were the risk factors associated mostly with production. Farmers were found to practise vaccination, stockpiling hay, low risk low production technology and livestock diversification as major ex-ante risk coping strategies and off farm investment as a major ex post risk coping strategy. Logistic regression revealed that number of economically active male members, educational status of the household head, ethnicity (Brahmin/chhetri), log of income from livestock, livestock unit, use of improved breeds and visit to extension service centers were positively associated with adoption of livestock insurance, whereas the number of economically active female members and experience in livestock rearing were negatively associated. The study highlighted the need to provide formal and nonformal education in the community and integrate a subsidy-based insurance program with an improved breed distribution program in the area.

Keywords :   Indexing, Insurer, Logistic Regression, Non-insurer, Production Risk