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Rejig of crop insurance scheme on the cards as premium rises by 50%.
Nov 20, 2020

The government is planning to modify the crop insurance scheme to diversify risk and lower the premium, which has increased 50% because of non-participation of nine empanelled companies.
 
'We are deliberating on creating a risk pool for claim settlement. Under the proposed pool, insurance companies will keep 20% of the premium and hive off the rest to the pool. The pool will be managed by an insurance company, preferably LIC,' said an official, who did not wish to be identified.
 
He said the primary insurer may be agriculture ministry, chipping in with Rs 2,000 crore as capital investment and bank guarantee of Rs 5,000 crore in the Rs 30,000 corpus. The remaining amount will be shared between participating insurance companies and state government governments.
    

The Economic Times

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