India:Cos pay Rs 6,624 cr crop insurance claims so far under PMFBY

Insurance firms have settled claims of Rs 6,624.65 crore to farmers so far in the first year of the roll out of the Pradhan Mantri Fasal Bima Yojana (PMFBY) in 2016-17, the Agriculture Ministry said today.

The PMFBY was launched in January 2016 replacing the older schemes to ensure farmers pay less premium and get full and early settlement of the claims.

During the 2016-17 crop year, a gross premium of Rs 22,344.93 crore was collected and total claims are estimated to be Rs 15,100.68 crore.

“Of this amount, claims of Rs 9,446.83 crore have been approved and claims of Rs 6,624.65 crore have already been settled/paid by insurance companies,” the ministry said in a statement.

It is to be noted that claim calculation for some crops/areas for Kharif 2016 and most of the areas/crops for Rabi 2016 is yet to be made by insurance companies, it said.

The 2016-17 crop year (July-June) received good monsoon.

In erstwhile crop insurance schemes, claims settled were only Rs 1,357.60 crore vis-a-vis premium of Rs 2,131.29 crore collected in 2011-12.

Since 2015-16 was a drought year, claims settled was higher at Rs 4,155.40 crore than the gross premium of Rs 3,076.92 crore.

During 2016-17, a total of 5.74 crore farmers were covered, including 1.35 crore non-loanees.