KATHMANDU, April 25 -- Non-life insurance companies have stopped settling the claims against the insured farm products after they failed to get premium subsidies from the government.

Chunky Chhetry, president of the Nepal Insurers' Association, said the insurers were compelled to stop paying the claims of the farm insurance after the government delayed payment of premium subsidies amount to the companies concerned. "As the financial liabilities of the non-life insurers have escalated, they are not in a position to assume further risks," he said.

The non-life insurers have declined to pay the insurance claims to farmers after they stopped selling their policies citing the dilly dallying by the government to release the subsidy amounts. S...