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Insurance companies made Rs 40,000 cr in 5 years under PMFYB scheme

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Insurance companies –

Under the central government’s flagship scheme, Pradhan Mantri Fasal Bima Yojana (PMFBY), insurance companies had made around Rs 40,000 crore between 2016-17 and 2021-22, according to a media report on Saturday.Also read : SBI Life Insurance rallies 9.5%, hits new 52-week high on strong Q1 results

According to the Times of India report, Narendra Singh Tomar, Union minister for agriculture, said the companies paid claims worth Rs 119,314 crore to farmers against the total premium collection of Rs 159,132 crore under PMFBY.

For the implementation of the scheme, the government roped in 18 general insurance companies, aimed to provide financial support to farmers suffering crop loss or damage arising out of natural calamities.

“Since inception of the scheme till Kharif 2021- 22 season, Rs 4,190 per hectare has been paid as claims to farmers under the scheme,” Tomar said in a written response to Rajya Sabha, accessed by the Times of India.

Launched six years ago, the scheme was revamped in 2020, enabling voluntary participation of the farmers. It also made it convenient for the farmer to report crop loss within 72 hours of the occurrence of any event — through the Crop Insurance App, CSC Centre or the nearest agriculture officer — with claim benefits getting transferred electronically into the bank accounts of the eligible farmer.

Under PMFBY, farmers pay 2 per cent of the sum insured as their share of premium for kharif crops, 1.5 per cent for rabi crops and 5 per cent for horticulture and commercial crops. If the actuarial premium is lower than this rate, the lower of the two would apply. The difference between the actuarial premium rate and the premium paid by farmers is the subsidy shared equally by the Centre and states.

Integration of land records with the PMFBY’s National Crop Insurance Portal (NCIP), Crop Insurance mobile app for easy enrollment of farmers, remittance of farmer premium through NCIP, a subsidy release module and a claim release module through NCIP are some of the key features of the scheme.

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