PMFBY Is Executed by National Insurance Company Limited

According to a senior of Agriculture Ministry official, for executing the Pradhan Mantri Fasal Bima Yojana or PMFBY, Centre has permitted states to establish their own insurance companies. The step comes into appearance after several requests from states. Comptroller and Auditor General (CAG) have also made observations in its 2017 report that old crop insurances policies which have now been combined with PMFBY. The policies were feebly implemented for the duration of 2011-2016. A Center official told that they have already allowed the states to set up their own crop insurance companies to implement PMFBY to contribute in bidding process. The sates have presently enlisted five public sector insurers and 13 private insurers. The public insurers include National Insurance Company (NIC), Oriental Insurance Company (OIC), Agriculture Insurance Company of India (AIC), United India Insurance Company (UICC), and New India Assurance. This PMFBY has launched in April 2016 and offers comprehensive coverage for crop insurance from pre-sowing to post crop production against unavoidable natural hazards at enormously low premium rate of 2 per cent for kharif harvest, 1.5 per cent for rabi crops and 5 per cent for horticulture.