Claims made under the Pradhan Mantri Fasal Bima Yojana (PMFBY) for the Kharif 2017 stood at Rs 16,000 crore. While Rs 11,000 crore has been paid to farmers, remaining Rs 5,000 crore would be given in the next few days, said senior officials from the ministry of agriculture. Officials also added that, out of Rs 5,000 crore which is still pending, Rs 1,500 crore is the state subsidy which is yet to be paid by Bihar and Telangana. While premiums received by the insurance companies for kharif 2017 is at Rs 19,000 crore.
“We expect that 90% of the claims for Kharif 2017 will be done in the next five-seven days, barring `1,500 which is pending from two states. Meetings have happened between the ministers; we have also written to the chief ministers to intervene because its their states’ farmers and we hope that this gets resolved soon,” added a person from the ministry of agriculture.
In 2015-16, premiums under the crop insurance was Rs 4,200 crore which went up to Rs 22,180 crore in 2016-17. While, in the last financial year, premiums were Rs 24,352 crore and its is projected that in this financial year the premium number would be around Rs 27,000 crore. Insurance participants also added that, loss ratio in the scheme was 75% in the 2016-17 and 90% in the last fiscal.
Crop insurance has played important role in the growth of non-life insurance in the last two years. In the financial year 2016-17, general insurance companies had posted a growth of around 32%, largely due to the implementation of PMFBY, which had received premiums of around Rs 22,180 crore.