7 months ago
On a date
15 Dec 16’
PMFBY-Linked INDIA CROP INSURANCE GROWTH IN 2016
Recent statistics released by the General Insurance Council of India reveal the degree to which insurance premiums are increasing in the country, particularly in the agriculture sector.
Agricultural insurance premiums increased by 75% in April-October 2016 compared to the same period in the previous year, following the launch of the Pradhan Mantri Fasal Bima Yojana (PMFBY) crop insurance scheme earlier in 2016 during the Kharif season.
Premiums collected for agriculture business rose to Rs 18,000 crore over the same period last year. This equates to just under USD 3,000 mn, making it the 3rd largest agricultural insurance scheme in the world after the U.S. (approx. USD 9,750 mn in 2015) and China (approx. USD 5,800 mn, of which 70% is for crops) and now ahead of Japan (approx. USD 1,000 million).
The agriculture ministry has also just announced that 26.5% of farmers are now insured, an increase of 18.5% from the previous year. The agricultural area insured has increased by 15%. Only around 23% of the agricultural area country wide was insured in 2014. The goal is to increase coverage to over 50% of agricultural land.
Perhaps even more importantly – at least for the farmers who do take out insurance – the total sum insured has increased by 104%. In the previous insurance scheme, the sum insured coverage was capped in order to minimise premiums. Therefore farmers who were insured could only recover a fraction of their losses. The new scheme provides premium subsidies so that the sum insured can increase and farmers can recoup all their losses when a calamity event occurs.
Posted 7 months ago by admin