Insurance companies, mostly private, saved approximately Rs 57,000 crore through the Pradhan Mantri Fasal Bima Yojana (PMFBY), revealed the data shared by Union Agriculture Minister Narendra Singh Tomar in the Rajya Sabha on Friday.

Though farmers might have benefited from the government’s flagship scheme since it was launched in 2016, insurance companies have made the most of it. In the past seven years, insurance companies have received Rs 1,97,657 crore as premium and paid around Rs 1,40,036 crore to farmers in claims, thus saving approximately Rs 57,000 crore.

In 2022-23, insurance companies got a premium of Rs 27,900 crore, but they paid around Rs 5,760 crore to farmers for the crop loss. In some states, private insurance companies didn’t have to pay even a single paisa to farmers, but got hundreds of crores in premium.

In MP, a private insurance firm received a premium of Rs 672 crore, but there was no crop loss claim, revealed the data. Under the PMFBY, farmers pay a nominal 2% of the sum insured as premium in kharif season and 1.5% in rabi, along with 5% for cash crops in both seasons.

The remaining premium amount is shared at 50:50 by the Centre and states. Regarding non-payment and delayed payment of claims, the Union Agriculture Ministry claimed that most of the complaints were addressed. The minister announced delinking of its premium share from the states’ contribution for faster claim settlement.

Source - https://www.tribuneindia.com