IRDAI has permitted micro-insurance agents to solicit and market crop insurance schemes like Pradhan Mantri Fasal Bima Yojana (PMFBY).
It is for some time that IRDA has been receiving request from some stakeholders to categorise government-sponsored crop insurance schemes as micro-insurance products irrespective of the amount of sum insured under the individual policy. Under IRDAI (Micro Insurance) Regulations 2015, the maximum amount of cover for crop insurance is fixed at Rs 1 lakh per cover. Now, micro insurance agents can sell to the non-loanee farmers the (three) government sponsored crop insurance schemes offered by an insurer which covers the crop of the policyholder, over the area of the insured field. However, the sum insured/premium/premium rate per crop/ unit area/tree, as the
Pradhan Mantri Fasal Bima Yojana, touted as one of the most farmer-friendly crop insurance schemes of independent India has some opposition from fertile Punjab region. With more advanced agriculture sector with more mechanization and canal fed irrigation and increased power subsidy, agriculture in Punjab is different from rain fed agriculture of other state. The current insurance scheme provides an indemnity level of 90 per cent. In Punjab, the average loss of major crops, wheat and paddy, is between two per cent and three per cent. So Punjab farmers will not benefit from this scheme and has request the indemnity level be raised to 95 per cent.
Further, with increased mechanization, the crops are harvested immediately and transport in a short time and hence the farmers have requested in
Union Government has approved Pradhan Mantri Fasal Bima Yojana to provide a social security net to millions of farmers across the country, who have been reeling under the impact of two consecutive droughts. The scheme will have low premiums as low as 1.5 per cent of the sum insured.
There will be a premium of two per cent of the sum insured from farmers for all kharif crops and 1.5 per cent for rabi crops. For horticulture crops, the annual premium will be five per cent of the sum insured. The balance premium would be paid by the government to the insurance companies. This would be shared equally by the Centre and state governments.
Currently, the average premium for all foodgrain crops was as high as 15 per cent, while for horticulture crops, it was even higher.
Digital Initiative is a