Insurers brace for highest ever claim ratio in FY20 for govt's crop scheme

Insurers are expecting claim ratio to be as high as 120 per cent this year as unseasonal rains and natural calamities led to high amount of crop damage

The year 2019-20 could see the highest claims ever under the government’s crop insurance scheme, the Pradhan Mantri Fasal Bima Yojana (PMFBY).

According to sources, insurers are expecting the claim ratio to be as high as 120 per cent this year. This is because unseasonal rains and natural calamities led to high crop damage, they said.

This year, at least three private insurers, ICICI Lombard General Insurance, Tata AIG and Cholamandalam MS General Insurance, did not participate in the scheme.  The claim data for 2018-19 is yet to be released by the government. Together, these companies accounted for about Rs 3,000 crore