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LATEST NEWS UPDATES | Insurance companies have not paid 83% of farmers' claims

Insurance companies have not paid 83% of farmers' claims

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published Published on Jun 6, 2017   modified Modified on Jun 6, 2017
-Down to Earth

As farmers' protests demanding loan waiver pick up across the country, there are other people who owe them huge amount of money: the insurance companies

A year after the Union government launched the Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather-based Crop Insurance Scheme (RWBCIS) in April 2016 to enable farmers tide over chronic crop losses due to various calamities, it clearly emerges that the insurance companies, despite collecting huge premiums, have not been able to settle insurance claims.  

A closer look at the schemes shows that the ambitious schemes have been of little help to the distressed farmers. In fact, insurance companies seem to be the actual beneficiaries, says an analysis carried in the State of India's Environment 2017: In Figures, released on the World Environment Day (HYPERLINK) by the Centre for Science and Environment and Down To Earth magazine. This annual publication is India's most credible data-driven annual statement on state of environment and complements the annual State of India's Environment published in January every year.

These two schemes, which plan to cover 50 per cent of cropped area by 2019, already cover 30 per cent of the cropped area and are implemented in 21 states. Close to 39 million farmers were covered under these schemes in the Kharif season of 2016.

Currently, 10 general insurance companies are offering crop insurance under the PMFBY. While insurance companies have collected Rs 9,041.25 crore as premium (for Kharif 2016 only), it has paid just 25 per cent (Rs 570.10 crore) of the total claims made (Rs 2,324.01 crore).

Please click here to read more.

Down to Earth, 5 June, 2017, http://www.downtoearth.org.in/news/insurance-companies-have-not-paid-83-of-farmers-crop-insurance-claims-soe2017-58020


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