Companies ‘greenery’ in crop insurance has been increasing for two years
The recent data on crop insurance shows that insurance companies have gained Rs 34,373 crore between 2021-22 and 2023-24. According to the central government crop insurance schemes, insurance companies have collected 3 56,325 crore and 6 90,698 crore as a premium. In the last 3 years, farmers have provided GDP and 9 10,937 crore. It is evident that companies’ profits have increased from the crop insurance business compared to the last three years. The most important reason for this is favorable monsoon and technology. This is due to the return of many companies that have been left to the crop insurance business.
How much decline in crop insurance suit?
Between 2021-22 and 2023-24, the insurance companies received a profit of Rs 34,373 crore by paying a total of Rs 35,325 crore. In contrast, the insurance companies have paid an insurance suit of Rs 78,616 crore after collecting a gross premium of Rs 93,629 crore between 2018-19 and 2020-21. That means a profit of Rs 15,013 crore. This is about Rs 2,000 crore more than the farmers’ premium.
According to official data, the Indian Agricultural Insurance Company (AIC), which has the largest presence of the PM crop insurance scheme, is worth Rs 5,565 crore, while its gross premium collection in 2023-24 is around Rs. 19,490 crore.
Not every company’s good days!
An English newspaper ‘Business Line’ quotes official categories, not that every insurance company is making a big profit. It depends on the expansion of its business on geographical areas and selected crops, as there are some major risk areas, where the claim is usually high. Companies should replace those risks by taking insurance in relatively safe areas. “
In 2023-24, when the Chola MS returned to the crop insurance business two years, the company had to distribute a claim of Rs 406 crore and the company raised Rs 526 crore as a premium. Similarly, Oriental Insurance, which has been away from the business for two years, has collected the gross premium for about Rs 1,912 crore in 2023-24 and Rs 3,360 crore.
What is the cup and cap model?
According to official sources, Kharif has allowed cup and cap models (80: 110 and 60: 130) since 2023, which will share the interests and losses of insurance companies. If the insurance company claims to be less than a certain limit, the government (both the center and the state) will return to the state treasury as a subsidy paid to the company as a subsidy. On the other hand, if the insurance company has to give more than a certain limit, then it is necessary to pay the claim to the center and the states.
On March 25, the government said in Parliament that it had received claims of Rs 1,73,938 crore under the PM Crop Insurance Scheme under the PM Crop Insurance Scheme, but the premium of Rs 32,476 crore was paid to Rs 32,476 crore for 2023-24 (February 28 for 2024-25.
More than 100% insurance claim in these states
In 2018-19, farmers’ arguments on the premium of more than 100 % insurance companies collected by Maharashtra, Andhra Pradesh, Haryana and Chhattisga Harya Haryana and 75.4 per cent at all India at the All India level. Under the PMFBY and weather -based crop insurance scheme (WBCIS), farmers have paid 1.5 per cent of the amount insured for rabi crops, 2 per cent per kharif and 5 per cent for cash crops.
The actual premium is obtained every year by the dialect process from insurance companies. In this, the government has subsidized the amount paid by the farmers as the central and state governments 50:50.
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