Rythu Bima, a life insurance scheme for farmers, has been extended by the Telangana government for one more year. It will pay Life Insurance Corporation (LIC) Rs 934 crore as premium for Rs. 5-lakh cover to 31 lakh farmers.
LIC has asked the state government for a hike in the premium to Rs. 3,013 per farmer, an increase of about 55% over last year’s premium per head.
The insurance scheme, which is being offered to farmers in the age group of 18-59, was launched last year. The relatives of about 15,000 farmers, who died during the past one year, received about Rs. 750 crore. Around 31 lakh farmers have joined the scheme.
Taking the high mortality rate and the cost of implementation under consideration, LIC wanted the government to revise the premium. Since the scheme has ended on August 14, the Department of Agriculture had sent a proposal to the state government asking it to extend the scheme for one more year.
The government issued an order sanctioning the premium amount to be paid to LIC. The premium for the year beginning August 14 is put at Rs. 3,013.50 per farmer. This would attract a GST of Rs. 542.50 and a stamp duty of Rs. 30.94 crore.
