Regulator IRDAI today allowed Point of Sales Persons on non-life insurers to solicit the three government sponsored crops insurance schemes.
Pradhan Mantri Fasal Bima Yojna (PMFBY), Weather-Based Crop Insurance Scheme (WBCIS) and Coconut Palm Insurance Scheme (CPIS) can now be solicited and procured through Point of Sales Persons of non-life insurers.
“The Authority, removes cap on sum insured for the above mentioned government sponsored crop insurance schemes,” Insurance Regulatory and Development Authority of India said in a circular.
The insurers wishing to solicit and procure the three government sponsored crop insurance schemes through Point of Sales Persons will have to follow the prescribed procedure.
Point of Sales Persons can solicit and market only certain pre-underwritten products approved by the IRDAI.
The Agriculture Ministry has empanelled 11 private sector companies and state-owned Agriculture Insurance Company (AIC) to implement the PMFBY. It is also actively considering to empanel four state-run general insurance companies.
Under the PMFBY, farmers’ premium has been kept lower at 1.5-2 per cent for foodgrains and oilseed crops and up to 5 per cent for horticultural and cotton crops.
There will not be a cap on the premium and 25 per cent of the likely claim will be settled directly in farmers accounts.
The new scheme aims to increase the insurance coverage to 50 per cent of the total crop area of 194.40 million hectares, from the existing level of about 25-27 per cent.
Source: Business Standard
Date: June 28th, 2016.