Boot out private players, let govt handle crop insurance, farmers’ body writes to PM

Khedut Samaj says that 17 lakh farmers in Gujarat are registered with the PMFBY, which was started in 2016. Last year, they paid a premium of Rs 3,022 crore, while they got around Rs 2,100 crore in claims from the private insurance companies. “In the past three years, private insurance companies earned a profit of Rs 12,000 crore through schemes given to farmers,” Speaking to The Sunday Express, Patel said, “Those farmers who were taking loans had to compulsory go for PMFBY, but there are many farmers who do not face the problem of water for irrigation, and they had to suffer great loss. The private insurance company, takes premiums in crores of rupees, but fails to pay claims of the farmers or they pay less. We have suggested that Central government form a Bhartiya Krushi Bima Ayog, so that the profit goes to the government and not to private insurance companies.”

Speaking about their request for a cattle insurance scheme, he said, “India tops the world in milk production, so cattle too should be covered by insurance. Presently, those involved in animal husbandry take cattle insurance from private companies. The premium is 8 per cent, which means the cattle rearers have to pay Rs 5000 as premium per animal. In PMFBY, the state and Centre jointly gives a subsidy on the premiums. Similar subsidy should be given to cattle rearers under a Union government sponsored cattle insurance scheme.”

Khedut Samaj, Gujarat also plans to seek a meeting with the prime minister to personally inform him of their requests for farmer welfare.