Pradhan Mantri Fasal Bima Yojana (PMFBY) was launched in January 2016 to combine all the state crop insurance schemes under one umbrella. It was done after allegations of nonpayment of claims by the State insurance companies saw a manifold increase. But the situation has remained the same with insurance companies, despite collecting huge premiums, have not been able to settle claims. However, the Government says it is studying the situation are determining the loop holes in the scheme.
A report by Dharmendra Tripathi of the2is.com:
PMFBY aims to cover 50% of the cultivated area by 2019, but has already covered 30% of the area. This scheme is implemented in 21 states and in the Kharif season of 2016, around 36 million farmers were covered under the scheme. In reply to a question in the Parliament on 28th March, 2017, Union Agriculture Minister of the State Purushottam Rupma informed that the insurance companies during the Kharif season of 2016 collected more than Rs 9,000 crore as premium. The total claims made during the period amounted to Rs 2,324 crore out of which only 25% has been paid, which means only Rs 570 crore is paid so far in the year 2017. Even if it is assumed all the claimed amount was paid, still the insurance companies are making a profit of Rs 6,357 crore. A total of 2.5 crore farmers insured their crop for the Kharif season but only 32.7 lakh were paid claims.
Insurance Companies under the Scheme
Government Insurance Companies are nonexistent under the scheme except for SBI General Insurance and Agriculture Insurance Company of India. Private insurance companies such as ICICI Lombard, HDFC Argo, IFFCO-TOKIO General Insurance, Cholamandalam MS, Bajaj Alliance, Future Generali, Reliance General Insurance, Tata AIG, etc are the major players in the PMFBY .
Major Public Sector Insurance companies like National Insurance Company, New India Assurance Company, Oriental Insurance Company and United India Insurance Company are not included under the scheme.
Agriculture Insurance Company of India Limited has collected a premium of Rs 3,610.78 crore during the Kharif season. 76.98% of the claims have not been paid by the company so far.
IFFCO-TOKIO covers farmers in three states. The total amount of premium collected by the company was Rs 1159.82 crore and only 15.45% of the claims were paid in the Kharif season.