Higher coverage, premiums to inflate crop insurance subsidy

Premium collection in 2016-17 was Rs 22,337 crore and claims were about Rs 13,500 crore

The 2017-18 subsidy bill for the states and the Centre due to the Pradhan Mantri Fasal Bima Yojna (PMFBY) is set to increase 10-15 per cent as the scheme enters the second year.

The farmers’ coverage is expected to increase by 10-15 per cent. In several states, insurers have raised premium quotations by five-seven per cent. 

In 2016-17, the central government had shelled out around Rs 8,867 crore and states Rs 9,056 crore to subsidise the PMFBY, which gives farmers crop insurance at low premiums and higher coverage.

“This year, there has been a 10-15 per cent increase in coverage