Insuring crops to get easier, IRDAI issues instructions

Pradhan Mantri Fasal Bima Yojana: Insurance regulator IRDAI has instructed all non-life insurance companies to increase the coverage of crop insurance so that farmers get maximum benefit.

The biggest reason for non-life insurance companies not taking much interest in crop insurance is that companies do not get reinsurance support at reasonable premiums and incur losses when claims are increased. According to the information, IRDAI has given assurance to the insurance companies that the reinsurance companies will fix the appropriate premium rates for crop insurance and the regulator will also intervene if needed.

The budget allocated for the Pradhan Mantri Fasal Bima Yojana (PMFBY) has been kept at Rs 16000 crore. The damage caused to the crops of farmers from natural calamities like thunderstorms, hailstorms and rains is compensated through the scheme.

Farmers will soon get the benefit of PMFBY. The Ministry of Agriculture has sought permission from the Directorate…

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