Government’s Farm Insurance Scheme To Undergo A Major Upgrade With Focus On Increasing Competition

One year after its launch, government’s crop insurance scheme – Pradhan Mantri Fasal Bima Yojana – is set for a major revamp in order to increase competition among insurers, lower the average premium and widen the cover of the scheme to include losses due to natural disasters, Economic Times has reported.

According to the daily, which quoted a government official, a high-level team has recommended a revamp to make the scheme more holistic in coverage and a win-win proposition for both farmers and insurers.

“There is a need to make agriculture insurance more competitive. This can be done by increasing competition among insurance companies, which in turn will lower the premium charged and thus make it more attractive for farmers,” the official said.

A NITI Aayog team, led by member Ramesh Chand, has prepared a blueprint to make the scheme more robust and to widen its range. The scheme has been criticised for slow and inefficient implementation. The scheme also did not do well in quickly assessing crop damages in places where farmers lost their crops.

The revamped version of the scheme is expected to cover damage and loss to housing and property in the event of a natural disaster, currently covered by the National Disaster Response Fund.

Also Read: PM Modi’s Crop Insurance Scheme Does Better Than Previous Schemes, But Challenges Remain