• UGI USER
  • Jul 08, 2024
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DECLINE IN CROP INSURANCE PREMIUMS UNDERWRITTEN

Why in the news?

  • General insurance companies have reduced their exposure to crop insurance under the Pradhan Mantri Fasal Bima Yojana (PMFBY) in FY24.
  • Gross direct premiums underwritten by insurers declined by 4.17% to Rs 30,677 crore from Rs 32,011 crore in the previous year, despite significant crop losses due to adverse weather conditions.

Key Highlights:

  • The PMFBY scheme has covered nearly 4 crore farmers, with a significant number enrolled through Common Service Centres (CSCs).
  • The Ministry of Agriculture launched the AIDE app to facilitate enrolment of non-loanee farmers, resulting in significant engagement with intermediaries and insurance
    brokers.
Source: Farm
Pradhan Mantri Fasal Bima Yojana (PMFBY)

About

  • Launched in 2016 by the Ministry of Agriculture & Farmers Welfare as an insurance service for farmers.
  • Replaced the National Agricultural Insurance Scheme (NAIS) and the Modified NAIS, aligning with the One Nation One Scheme theme.

Objectives

  • Provide insurance coverage and financial support for farmers in case of crop failure due to natural calamities, pests, and diseases.

Premium Rates:

  • 2% for Kharif crops, 1.5% for Rabi crops, and 5% for annual commercial and horticultural crops.
  • Remaining premium shared equally by central and state governments.

Associated Article:

https://universalinstitutions.com/republic-day-parade/