Insurance coverage in agricultural products increased by 58 per cent in the last fiscal year.
The Insurance Board attributed the surge to the government subsidy as the government currently offers subsidy equivalent to 75 per cent of the premium amount to encourage farmers to insure their farm products.
The insurance companies sold insurance policies worth Rs 18.72 billion in agricultural products in the last fiscal year 2018-19, compared to the insurance policies of Rs 11.85 billion a fiscal year ago in 2017-18, according to the board that revealed that the insured amount has increased fourfold in the past five years.
Last fiscal year, non-life insurance companies collected Rs 631.44 million in premiums, up from Rs 510.93 million a fiscal year ago. “Over the period, the insurers issued 101,152 policies, some 73 per cent more compared to a fiscal year ago.”
The government – through the budget for the fiscal year 2014-15 – had announced providing 75 per cent subsidy in the premium of agriculture insurance to farmers.
According to the board, the government provided premium subsidies totalling Rs 631.44 million to farmers in the fiscal year 2018-19. “The subsidy was 65 per cent more than the amount a fiscal year ago,” the board claimed, adding that the board made it mandatory for non-life insurers to provide agriculture insurance services, assigning them certain districts to carry out the business due to low coverage.
The board has enforced over two dozens of distinct insurance policies to cover major livestock and crops – including ginger, coffee, paddy, mushroom, potato, sugarcane, seed, vegetable, turmeric, cardamom, banana, cattle, fish, poultry and goat – produced in the country.
Likewise, farmers can claim insurance, if their crop or livestock is damaged from fire, lightning, earthquake, flood, inundation, drought, landslide, tornado, hailstorm and snowfall. They can also claim insurance for losses due to pest and disease, the board added.
According to the board, the share of crop insurance is still negligible compared to insuring livestock. In the last fiscal year, farmers purchased policies in crop insurance amounting to Rs 834.58 million, which stood at only 4.7 per cent of the total insured amount in farm products. “In the crop insurance, farmers purchased policies worth Rs 547.39 million to cover risks in fruit production.”
The Insurance Board attributed the surge to the government subsidy as the government currently offers subsidy equivalent to 75 per cent of the premium amount to encourage farmers to insure their farm products.
The insurance companies sold insurance policies worth Rs 18.72 billion in agricultural products in the last fiscal year 2018-19, compared to the insurance policies of Rs 11.85 billion a fiscal year ago in 2017-18, according to the board that revealed that the insured amount has increased fourfold in the past five years.
Last fiscal year, non-life insurance companies collected Rs 631.44 million in premiums, up from Rs 510.93 million a fiscal year ago. “Over the period, the insurers issued 101,152 policies, some 73 per cent more compared to a fiscal year ago.”
The government – through the budget for the fiscal year 2014-15 – had announced providing 75 per cent subsidy in the premium of agriculture insurance to farmers.
According to the board, the government provided premium subsidies totalling Rs 631.44 million to farmers in the fiscal year 2018-19. “The subsidy was 65 per cent more than the amount a fiscal year ago,” the board claimed, adding that the board made it mandatory for non-life insurers to provide agriculture insurance services, assigning them certain districts to carry out the business due to low coverage.
The board has enforced over two dozens of distinct insurance policies to cover major livestock and crops – including ginger, coffee, paddy, mushroom, potato, sugarcane, seed, vegetable, turmeric, cardamom, banana, cattle, fish, poultry and goat – produced in the country.
Likewise, farmers can claim insurance, if their crop or livestock is damaged from fire, lightning, earthquake, flood, inundation, drought, landslide, tornado, hailstorm and snowfall. They can also claim insurance for losses due to pest and disease, the board added.
According to the board, the share of crop insurance is still negligible compared to insuring livestock. In the last fiscal year, farmers purchased policies in crop insurance amounting to Rs 834.58 million, which stood at only 4.7 per cent of the total insured amount in farm products. “In the crop insurance, farmers purchased policies worth Rs 547.39 million to cover risks in fruit production.”
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