Officials said this number may be just be an indicator and real losses may be higher as the current insurance scheme only covers up to 60% of losses. There are still some farmers who aren't part of the scheme, so their losses will be unaccounted for.
Under the current policy, all farmers who take bank loans have to take crop insurance under the central National Agriculture Insurance Scheme (NAIS). Under this scheme, premium is fixed depending on the crop being insured. Only a small percentage of the total premium is paid by the farmer, the remaining is pooled in by the state and central governments.
"Claims against losses this year are going to be exceptionally high as this is the fourth consecutive year of drought and the most severe one," said a senior official. Productivity and area under cultivation in the state have significantly dipped due to poor rainfall.
For the next cropping season, the NAIS is being replaced by the Pradhan Mantri Fasal Bima Yojana (PMFBY) from June 1. Under this policy, premium to be paid by farmers has been reduced to 2% of the sum insured for all crops, while the rest will be borne by the state and central governments. The PMFBY includes many more conditions under which claims can be made, like post-harvest losses. "The new insurance scheme offers more coverage. We are trying to get more farmers to take insurance under the PMFBY scheme," said the official.
Source - timesofindia.indiatimes.com
