As the Centre has been trying to win back States that quit the flagship Pradhan Mantri Fasal Bima Yojana (PMFBY), a drop in gross premium in the current kharif season can be a good sign for the crop insurance scheme.
According to preliminary data from 18 States, the gross premium collected under PMFBY this kharif season is Rs. 14,943 crore as of August 10, compared with Rs. 16,853 crore during the whole of last season. There could be some increase in gross premium as more data are compiled, experts said.
The amount of sum insured is a notch higher at Rs. 94,642 crore so far this season — up from Rs. 94,604 crore last season.
“The premium rate has gone down in general as a risk factor has been lowered after integration of digitised land record in many State. Now, only one owner can be enrolled against his land whereas there were no such checks before,” said a senior executive of an insurance firm. Citing the case of Madhya Pradesh, he said another Rs. 500-600 crore may get added in gross premium but it will still be much lower from last year.
