Pradhan Mantri Fasal Bima Yojana (PMFBY), which the ambitious crop insurance scheme for the distressed farmers in the country, has facilitated more earning for the insurance companies.
As per an estimate the gross insurance premium that the insurance companies earned was Rs. 22,180 crore and the company paid only Rs. 12, 949 crore to the farmers. This came when there are delays in the claims to be paid to farmers throughout the country. The reports from Raigarh in Chhattisgarh have showed that farmers are getting Rs. 5 to Rs. 18 as crop insurance claims.
This scheme was launched in April 2016, and it is a comprehensive crop insurance scheme from pre-sowing to post harvesting that covers all the non-preventable natural risks that pose threats to the crops. However, the scheme does not seem to do its task.
Agriculture expert, Devinder Sharma is saying the scheme has many flaws and it also seems that the scheme has been formulated deliberately to benefit the insurance companies. The data itself says how insurance companies are making a fortune out of this scheme.
He further said that only in India the private companies bid for the premium whereas in other countries, the government only fixes the premium. Both the private as well as public insurance companies are empanelled to adopt the schemes.
Officials said that the government is trying to assess the exact losses and the government is also pushing the states and other stakeholders to make the timely settlement of the losses of the farmers.