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CROP Insurance is a fundamental requirement for a farmer. It will help him not to get into debt trap.
- One of the major decisions of the Narendra Modi government in the agricultural sector was the introduction of Pradhan Mantri Fasal Bima Yojana from kharif 2016.
- Farmers’ premium was brought down to only 2 percent of the sum insured for kharif, and 1.5 percent for rabi crops. For annual commercial and horticulture crops, the premium was 5 percent.
- While PMFBY provides an insurance cover based on yield, the weather-based scheme provides protection against adverse events such as deficit and excess rainfall, high or low temperature, humidity, etc.
- It seems that farmers see value in crop insurance, as an increase in coverage was one of the demands in their march to Delhi on Oct. 2, 2018.
- The two schemes have been implemented in five seasons so far, and based on this experience, the government has issued revised guidelines in September 2018.
- Finally, the Indian government has also increased the risks that can be covered under the scheme.
- Farmers will now get coverage for hailstorms, crop fires, damage from animals, landslides and rainstorms. More importantly, farmers will now get 72 hours instead of 48 hours to inform state governments about crop damage.
Private Crop Insurance Companies
- Tata AIG General Insurance Co. Ltd.
- Reliance General Insurance Co. Ltd.
- Cholamandalam MS General Insurance Co. Ltd.
- Agriculture Insurance Company of India Ltd
- IFFCO-Tokio General Insurance Co. Ltd
- HDFC ERGO General Insurance Co. Ltd.
- ICICI Lombard General Insurance Co. Ltd
- Future Generali India Insurance Company Limited
- Bajaj Allianz General Insurance Co. Ltd
- Bajaj Alliance General Insurance Co Ltd
- Universal Sompo General Insurance Company Limited
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