Govt. allowed general insurers to participate in arm Insurance Schemes
Mumbai : Now four public sector general insurers are also allowed to participate in farm insurance schemes -- the Pradhan Mantri Fasal Bima Yojana (PMFBY) and Unified Package Insurance Scheme.
Potential of over $2.5 billion in premium collection. The government had kicked off the scheme on June 1 without involving any of the four public sector general insurers, who control almost 50 per cent of the market.
11 private sector players were allowed to participate as they have better experience in crop insurance schemes.
The PMFBY has replaced the existing two crop insurance schemes -- the National Agricultural Insurance Scheme (NAIS) and the Modified NAIS
For Kharif crops, the premium charged would be up to 2 per cent of the sum insured, while for Rabi crops, the premium will be up to 1.5 per cent.
The country's largest general insurer New India Assurance's Chairman G Srinivasan told PTI, "We have been allowed to participate in these schemes. Now that Kharif crop season has already begun, we will participate in the Rabi season".
Now, all the four state-owned companies will associate with AIC to provide cover under the schemes.
Their participation will also ensure that the scheme benefits both loanee and non-loanee farmers as the premium is quite low.