The government today informed Parliament that it has roped in 10 private insurance companies along with state-run AIC to bring more farmers under crop insurance schemes and create competition.

So far, the state-run Agriculture Insurance Company of India (AIC) has been offering yield-based and weather-based crop insurance programs.

"Ten private general insurance companies are empanelled for implementation of crop insurance schemes," Minister of State for Agriculture Mohanbhai Kundaria said in a written reply to the Lok Sabha.

Of total coverage of farmers in the 2013-14 kharif (summer) season, AIC's share was 77 per cent, while the rest was by private companies. However, during the rabi (winter) season, public and private players had equal share in coverage of farmers under crop insurance schemes, the Minister said.

Private players have been roped in alongiwth AIC for implementation of the National Crop Insurance programme ( NCIP) to increase the coverage of farmers/area and also to create competition in crop insurance sector, he added.

At present, about 65 crops are covered under the scheme and more than 25 per cent of the cropped area is insured.

To a separate question on bogus beneficiaries under crop insurance scheme, Kundaria said that "some discrepancies have been reported in implementation of Weather Based Crop Insurance Scheme (WBCIS) in Rajasthan".

He added: "Two cases relating to irregularities in coverage of non-loanee farmers during rabi season of 2010-11 in Hanumangarh and Sriganganagar districts were reported to the Department.

"The concerned insurance company - ICICI-Lombard General Insurance Company - after investigations and at the direction of the state government has settled the admissible claims to the concerned farmers."

WBCIS, which is optional for states to implement the scheme, is being implemented in 19 States in one or more seasons, he added.

Source - http://economictimes.indiatimes.com/