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CoverStory

Crop InsuranCe durIng 2017-18 Subhash Sharma, an insurer
Amount in Rs lAkhs
with a public sector insurance
Company Gross premium Claim amount Farmers BeneFiCiaries company, told Tehelka that the
Covered private insurance companies
Bajaj alliance 1,83,535 1,14,852 32,38,634 5,18,205 may claim that profit was due to
a good monsoon and resultant
Bharati axa 37,946 9,176 8,71,576 48,456
good production, but questioned
cholaMan- 49,716 16,512 9,21,658 5,36,845 why private operators were
dalaM MS given more business as against
hdFc ergo 2,20,131 1,77,234 23,64,942 13,74,816 public sector companies. Farm
bodies counter claims to private
icici loMBard 2,37,106 1,38,206 21,63,575 18,70,649
insurers saying that there were
the new india drought like situations in some
aSSurance 1,78,449 1,21,825 29,07,094 3,54,601 parts of Maharashtra and flood
national 1,43,760 1,31,748 36,91,910 11,82,269 like situation in other parties, but
inSurance still insurers made money. That
reliance 1,18,114 47,596 30,49,898 17,84,102 calls for a re-think on the policy
as PMFBY has mainly benefited
SBi general 70,030 9,871 8,69,561 84,885 insurers than farmers. Were
tata aig 41,576 34,482 13,80,886 2,98,386 farmers’ claims not settled?
Information also reveals that
univerSal 1,24,385 98,509 23,34,563 2,58,369
SoMPo the prime minister’s crop in-
surance scheme has also failed
to enthuse farmers. About 2.90
Private insurers use lakh farmers exited the scheme in Madhya Pradesh,
31.25 lakh in Rajasthan, 19.47 lakh in Maharashtra
public infrastructure and 14.69 lakh in Uttar Pradesh. In the year 2016-17,
5,72,17,159 farmers had joined the scheme but the
extensively to advertise very next year that is 2017-18 84.47 lakh farmers exit-
ed it. In fact in all about a whopping one crores farm-
the PMFBY, enrol ers had exited the scheme after just a year. Was that
the farmers fond that the scheme was meant to be a
farmers who have moneymaker for private insurance companies only?
The data also reveals that the number of farmers
covered under the scheme had decreased, but the
taken crop loans, collect profit of the insurance companies increased.
For instance in Uttar Pradesh, the number of farm-
premiums, settle ers insured in 2016-17 was 67.69 lakh but fell the next
year to 53 lakh in 2017-18. However, the difference
claims and specify between premiums received and compensation
paid instead of going down, went up sharply from
548.94 crores in 2016-17 to 1046.81 crores the
the sums assured for following year.
Ditto for Madhya Pradesh, Maharashtra, West
various crops Bengal and some other states. For instance in West
Bengal, the number of farmers who registered for
crop insurance scheme in 2016-17 was 41.33. It went
insurance scheme has proved to be a jackpot for in- down to 39.09 lakh in 2017-18, but the difference
surance companies than farmers. The Agriculture between premiums received and compensation paid
Ministry’s data also points to that when it says that 17 went up from 321.26 crores in 2016-17 to 547.87
insurance companies-five public sector and 12 pri- crores in 2017-18. (Tehelka columnist, Komal Amit
vate empanelled under the PMFBY had registered Gera will do a series on fiasco called Crop Insurance
a profit of 15,029 crores as they paid out claims of shortly.)
2,767 crores against the premium of 17,796 crores. To
add to it the PMFBY is exempted from Service Tax or GST. letters@tehelka.com

tehelka / 28 february 2019 16 www.tehelka.com