A farmer rests on a heap of harvested rice crop at a wholesale grain market in Chandigarh.(Reuters File Photo)
A farmer rests on a heap of harvested rice crop at a wholesale grain market in Chandigarh.(Reuters File Photo)

Crop insurers made Rs 10,000 crore profit amid agrarian crisis: CSE

The CSE report shows that insurance companies had only settled 32.45% of the claims made till April 2017.
By Jatin Gandhi | Hindustan Times, New Delhi
UPDATED ON JUL 22, 2017 12:26 AM IST

An independent evaluation of the Modi government’s much-touted crop insurance scheme has showed that insurers gained nearly Rs 10,000 crore in gross profit during the last kharif season, from June to November 2016.

However, it settled less than a third of the crop-loss claims filed till early this year.

The report released on Friday by the Centre for Science and Environment (CSE) showed state-level “implementation gaps” in the Pradhan Mantri Fasal Bima Yojana (PMFBY), which replaced the previous National Agricultural Insurance Scheme in April 2016. These discrepancies could negate the benefits accorded by the scheme to farmers, the non-profit think tank said.

The CSE report cited state-wise data from the ministry of agriculture and farmers welfare to show that insurance companies had only settled 32.45% of the claims made till April 2017.

While farmers raised claims for nearly Rs 6,000 crore, they were paid less than Rs 2,000 crore.

Citing data from the Insurance Regulatory and Development Authority of India, the CSE pointed out that insurance companies grossed more than Rs 15,891 crore in premiums.

The claims amounted to a little over Rs 5,962 crore. Of this, less than a third was paid out. “Data released by the IRDAI indicates that the PMFBY played a significant role in the non-life insurance industry in financial year 2016-17,” the report added.

However, insurance companies contended that the gap between the premium collected and the claims processed will go down as the scheme covers more farmers. “Kharif 2016 was a good period for agriculture. There was undoubtedly a surplus this time, but it’s like a reserve for the future. Claim settlements are still on,” said Ajay Singhal, deputy general manager (crop insurance) at the Agriculture Insurance Company of India.

The premium for crop insurance under the government scheme is heavily subsidised, with the Centre and state governments pitching in to share subsidy costs. However, the think tank’s findings suggested that state governments – in several instances – wanted to keep their outflows low.

While the state government’s share of the premium for the 2016 kharif season was Rs 650 crore in Bihar, about a quarter of its annual agricultural budget, Madhya Pradesh paid nearly Rs 1,500 crore, which is 60% of its annual budget. “The economics of poor states does not allow for a 50-50 sharing formula with the Centre. The government should come up with a graded subsidy-sharing arrangement,”?said Chandra Bhushan of the CSE.

Though the report described the PMFBY as “a classic case of poor implementation of a good scheme”, it also mentioned a few positives that arose through the central initiative. Foremost among them was the fact that farmer coverage had crossed four crore, a gain of nearly 25% over the previous year. The PMFBY narrows the gap between the actual cost of production and the sum insured, a major impediment faced by farmers in previous versions of the insurance scheme.

Incidentally, the implementation-related shortcomings listed in this report are strikingly similar to the discrepancies found by the Comptroller and Auditor General (CAG) of India in crop insurance schemes that were in effect between 2011 and 2016. The CAG report was tabled in Parliament on Friday.

The CAG findings say even though the Centre released its share on time, delay on the part of the states “defeated the objective of providing timely financial assistance to the farming community”. It stated that while coverage of farmers under the schemes was “negligible”, two-thirds of the subjects surveyed were not even aware of them.

SHARE THIS ARTICLE ON
app
Close
Representational Image. (HT photo)
Representational Image. (HT photo)

UP: Healthcare workers who haven’t got Covid vaccine yet can do so on Jan 22

By HT Correspondent | Edited by Smriti Sinha
PUBLISHED ON JAN 18, 2021 08:41 AM IST
The health department had registered 31,700 workers on CoWIN portal for the first round of the vaccination, of which 22,643 workers came at 317 vaccination centres across UP
Close
A medic administers the first dose of Covid-19 vaccine to a beneficiary in the presence of Uttar Pradesh chief minister Yogi Adityanath on January 16. (PTI)
A medic administers the first dose of Covid-19 vaccine to a beneficiary in the presence of Uttar Pradesh chief minister Yogi Adityanath on January 16. (PTI)

Covid vaccination drive to continue as per priority: UP CM Adityanath

PUBLISHED ON JAN 18, 2021 08:40 AM IST
Though the state has witnessed a significant drop in Covid-19 cases, utmost alertness should be maintained, he said
Close
Bengali actress Saayoni Ghosh(Twitter.com/@sayani06)
Bengali actress Saayoni Ghosh(Twitter.com/@sayani06)

Senior BJP leader files complaint against Bengali actor for 'hurting sentiments'

PTI
PUBLISHED ON JAN 18, 2021 08:27 AM IST
Bengali actress Saayoni Ghosh, however, claimed the meme dates back to February 2015, and was not posted by her, but an act of mischief by someone who hacked her account then.
Close
The complex would come up on five acres of land allotted to the board following the November 2019 order of the Supreme Court in the Ram Janmabhoomi- Babri Masjid case.((Special arrangement))
The complex would come up on five acres of land allotted to the board following the November 2019 order of the Supreme Court in the Ram Janmabhoomi- Babri Masjid case.((Special arrangement))

Ayodhya mosque project kicks off on R-Day with raising flag, planting trees

PUBLISHED ON JAN 18, 2021 08:23 AM IST
The area would be having plants and trees from all different geographical regions of India and from different parts of the world in order to create awareness for imminent threat of climate change.
Close
Commuters on a foot overbridge amid dense fog in New Delhi. (Amal KS/HT PHOTO)
Commuters on a foot overbridge amid dense fog in New Delhi. (Amal KS/HT PHOTO)

Delhi witnesses moderate fog, very poor air: IMD

UPDATED ON JAN 18, 2021 08:35 AM IST
Air quality is likely to remain in the lower end of the “very poor” category on January 18 and 19 according to air quality warning system for Delhi
Close
View of a neighbourhood shrouded in fog as cold wave grips northern India, in Jaipur. (File photo)
View of a neighbourhood shrouded in fog as cold wave grips northern India, in Jaipur. (File photo)

Dense fog continues to envelop Indo-Gangetic plains region

By HT Correspondent | Edited by Smriti Sinha
UPDATED ON JAN 18, 2021 08:33 AM IST
Whenever an intense Western Disturbance passes, there is a lot of moisture in the air and the air is also cool. These conditions are favourable for fog formation, says IMD
Close
The metro projects will provide an environment-friendly mass rapid transit system to the two cities in Gujarat, the Prime Minister's Office said in a statement. (ANI Photo)
The metro projects will provide an environment-friendly mass rapid transit system to the two cities in Gujarat, the Prime Minister's Office said in a statement. (ANI Photo)

'Landmark day': PM Modi to perform bhoomi pujan of Gujarat metro projects

By hindustantimes.com | Edited by Arpan Rai
PUBLISHED ON JAN 18, 2021 08:11 AM IST
"Today is a landmark day for two of Gujarat’s leading urban centres. The Bhoomi Poojan of Surat Metro and Phase-2 of the Ahmedabad Metro would take place at 10:30 AM," PM Modi said in a tweet on Monday.
Close
Saif Ali Khan in a still from Tandav.
Saif Ali Khan in a still from Tandav.

FIR registered in Lucknow against makers of web series 'Tandav'

By hindustantimes.com | Edited by Amit Chaturvedi
PUBLISHED ON JAN 18, 2021 07:51 AM IST
The makers have been accused of hurting religious sentiments. The information and broadcasting ministry has sought an explanation from Amazon Prime.
Close
Farmers during the ongoing protest against the new agriculture laws at Delhi’s Singhu border on Sunday.
Farmers during the ongoing protest against the new agriculture laws at Delhi’s Singhu border on Sunday.

Farmers' protest LIVE: SC to hear Centre's plea against tractor rally today

By hindustantimes.com
UPDATED ON JAN 18, 2021 08:41 AM IST
LIVE: Farmers on Sunday announced they would hold the rally peacefully without disrupting the official Republic Day celebrations.
Barring Mumbai, schools in other parts of the state reopened for students of Classes 9 to 12 from November 23. (HT FILE )(HT_PRINT)
Barring Mumbai, schools in other parts of the state reopened for students of Classes 9 to 12 from November 23. (HT FILE )(HT_PRINT)

Schools in Delhi to reopen for senior students today: All you need to know

By hindustantimes.com | Edited by Shivani
PUBLISHED ON JAN 18, 2021 07:19 AM IST
Schools and colleges have remained shut since March 2020 in the light of the Covid-19 pandemic which has claimed more than 1.5 lakh lives so far.
Close
An Indian woman carrying a child crosses a road on a cold day in Jammu, India Sunday, January 17, 2021(AP)
An Indian woman carrying a child crosses a road on a cold day in Jammu, India Sunday, January 17, 2021(AP)

Covid-19 vaccination: Key meeting likely today on future course of efforts

By hindustantimes.com | Edited by Arpan Rai
PUBLISHED ON JAN 18, 2021 06:52 AM IST
More than 2.24 lakh people have been vaccinated against the disease till now, which has infected more than 10.5 million people in the country and claimed at least 150,000 lives.
Close
Medical workers in protective suits attend to novel coronavirus patients at the intensive care unit (ICU) of a designated hospital in Wuhan, (REUTERS)
Medical workers in protective suits attend to novel coronavirus patients at the intensive care unit (ICU) of a designated hospital in Wuhan, (REUTERS)

LIVE: China reports more than 100 Covid-19 cases for sixth consecutive day

By hindustantimes.com
UPDATED ON JAN 18, 2021 08:30 AM IST
The United States continued to report more deaths as toll neared 400,000. It is still the worst country to be affected by the pandemic followed by India and Brazil.
Earlier in the day, Bharatiya Janata Party MP Manoj Kotak wrote to I&B minister Prakash Javadekar seeking a ban on the series for allegedly ridiculing Hindu deities.
Earlier in the day, Bharatiya Janata Party MP Manoj Kotak wrote to I&B minister Prakash Javadekar seeking a ban on the series for allegedly ridiculing Hindu deities.

Tandav row: Govt summons Amazon Prime executives

By Amandeep Shukla, New Delhi
PUBLISHED ON JAN 18, 2021 05:44 AM IST
The ministry took the action after there were allegations that the show, Tandav, hurt religious sentiments, the official said.
Close
The BJP leader has alleged that the series has hurt the sentiments of Hindus and he would not tolerate this. (Screengrab)
The BJP leader has alleged that the series has hurt the sentiments of Hindus and he would not tolerate this. (Screengrab)

I&B ministry summons Amazon Prime India over controversy around 'Tandav'

ANI
PUBLISHED ON JAN 18, 2021 05:39 AM IST
This comes after two Bharatiya Janata Party (BJP) leaders alleged that the Saif Ali Khan-starrer web series 'Tandav' hurts Hindu religious sentiments.
Close
In January last year, Ashwani Sharma, a former legislator from Pathankot, was appointed president of state unit.(Gurpreet Singh/HT)
In January last year, Ashwani Sharma, a former legislator from Pathankot, was appointed president of state unit.(Gurpreet Singh/HT)

Farm stir, leadership crisis in Punjab unit pose twin challenges for BJP

By Smriti Kak Ramachandran, New Delhi
UPDATED ON JAN 18, 2021 07:43 AM IST
A second functionary said the party’s expansion and consolidation in the state appear difficult in the absence of a “Sikh face” and leaders who have clout within the state’s scheduled caste population.
Close
SHARE
Story Saved
OPEN APP