Wednesday, November 20, 2019

Posted at: Jun 19, 2019, 7:08 AM; last updated: Jun 19, 2019, 7:08 AM (IST)

A first: State saves Rs120-crore on crop insurance scheme

A first: State saves Rs120-crore on crop insurance scheme
The savings may go up to Rs 150 crore depending on the number of beneficiaries to be covered during the kharif season 2019 and rabi season 2019-20 — Ajit Balaji Joshi, Director General, Agriculture and Farmers’ Welfare

Nitin Jain
Tribune News Service
Ambala, June 18

In a first, Haryana has saved a whopping sum of Rs120 crore in the premium amount to be paid to the insurance companies for the Pradhan Mantri Fasal Bima Yojana (PMFBY) as the state’s share to insure the kharif and rabi crops of farmers in in 2019-20.

The savings, which are expected to touch Rs150 crore, depending upon the number of beneficiaries to be covered under the national crop insurance scheme, were achieved after negotiations with the private insurance companies, which were made to insure the crops even below the lowest bids submitted during the e-auctioning of the process.

With this, Haryana has become the first state in the country to negotiate with the insurance companies and save major amount to be paid as premium.

Confirming the development, Director General, Agriculture and Farmers’ Welfare, Ajit Balaji Joshi told The Tribune there was no provision of negotiation of premium rates for selection of insurance companies once they qualified as lowest bidder.

However, the department made a marathon exercise to negotiate the premium rates with the indicative or lowest premium in each cluster. Following negotiations, the insurance companies submitted their final average premium rates, which came at 7.57 per cent for cluster-I by Agriculture Insurance Company of India Limited, 6.3 per cent by SBI General Insurance Company Limited for cluster-II and 6.49 per cent by Bajaj Allianz for cluster-III.

“The net savings amounted to Rs118.95 crore to the state government with the lowering of 13.93 per cent premium amount on the comparison of area coverage during rabi season 2017-18 and kharif season 2018. This may go up to Rs150 crore on actual number of farmers insured during kharif season 2019 and rabi season 2019-20,” Joshi disclosed.


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