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Centre ask states to set up own insurance cos for PMFBY

Press Trust of India  |  New Delhi 

The Centre tonight said it has asked state governments to set up their own companies for better implementation of the crop scheme and warned the existing insurers of strict action in case of irregularities.

Replying to a short duration debate on 'agrarian crisis' in the Lok Sabha, Agriculture Minister Radha said there are "implementation issues" in the government's flagship Pradhan Mantri Fasal Bima Yojna (PMFBY) launched in 2016.

"While assessing the first year's implementation of PMFBY, we decided to allow states to set up their own companies to implement the scheme," he said.

The states have been asked to establish their own insurance companies, he said, adding that and have already shown interest in this regard.

At present, both public and private insurers are implementing the PMFBY. More companies will enhance the competition.

Responding to concerns expressed by the members, the minister said the will take action against the insurance companies if any irregularities are found in premium collection and claim settlement.

He highlighted that the scheme was revamped by the Modi to reduce premium and increase risk cover.

The PMFBY has replaced two schemes National Agricultural Insurance Scheme as well as the Modified NAIS.

Singh further said that is working to ensure farmers' income gets doubled by 2022.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, July 19 2017. 22:48 IST