Before the brand new Kharif season, the Bead mannequin of implementation of the Pradhan Mantri Crop Insurance Scheme (PMFBY), the flagship program of the central authorities, which protects farmers from crop losses, is attracting consideration once more.
According to officers, the states have requested the central authorities to permit them to implement this mannequin, wherein insurance coverage firms reimburse the states a portion of the premium charged.
The premium for this system is collected with the state and central authorities bearing the utmost monetary burden whereas farmers pay solely a fraction of it. This scheme has been properly acquired among the many farmers on account of monetary advantages.
However, through the years it has proved unpopular with insurance coverage firms as they’ve needed to pay greater compensation. The scheme has additionally attracted the eye of farmer leaders who say it doesn’t present satisfactory compensation. The rising monetary burden on account of excessive premium charges has seen the state governments demand to revisit the scheme.
In this context, the implementation of the plan is being thought-about within the drought-prone district of Bead, which commonly studies crop loss incidents on account of excessive climatic occasions.
For the Kharif final 12 months, no insurance coverage firm had responded to tenders floated by the authorities to implement the scheme. The Indian agricultural insurance coverage firm was requested to implement the scheme beneath a particular mannequin right here. Under this mannequin, the insurance coverage firm gives cowl of 110 % of the premium collected. If the compensation quantity is greater than 110 %, then the extra quantity will likely be borne by the state authorities. But if the compensation quantity is lower than the premium collected, the insurance coverage firm will reimburse the state authorities its share. The latter is extra prone to be the case with a standard monsoon, as India noticed in 2020.
So, the final Kharif, Bead noticed a set of complete premium of Rs 803.65 crore (farmer share Rs 60.82 crore, state and central authorities Rs 408.49 crore and Rs 333.83 crore respectively), whereas compensation for crop loss was calculated at Rs 8.61 crore. was. The insurance coverage firm deducted Rs 160.63 crore and returned Rs 634.41 crore to the state authorities. Government officers mentioned that the scheme would permit the state to obtain reimbursement of the premium quantity. According to officers, that is being mentioned with the central authorities, however the scheme is unlikely to be applied within the upcoming kharif season.
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With inputs from TheIndianEXPRESS
