(FE)
The government plans to put a ceiling on crop insurance premium after complaints by many states that the insurers were charging very high premiums and that finally is taking a toll on the official budget. There is also a plan to create a pool from which premiums can be paid to companies so that delay of claims settlement is avoided. These are some of the proposals mooted by the Centre to undertake the necessary changes in Prime Minister Fasal Bima Yojana (PMFBY) guidelines as it plans to roll out the provisions in this kharif season.
“The premium rose to 60% for one crop in a district during last year kharif. If states agree, a maximum limit on premium can be fixed and companies will have to quote below that,” a government official said. If no company participates in the premium bidding process, that crop may be taken off from the insurance list, he said, adding a decision will be based on the feedback from the states which are expected by this week.
