The significance of crop insurance is rising steeply at government-undertaken companies.
The change is being facilitated by the Pradhan Mantri Fasal Bima Yojna (PMFBY), which has triggered competition among general insurance companies. Almost all of them expect crop insurance to contribute close to a fifth of their premiums in the next three to four years, from close to nil last year. At present, motor and health insurance together account for close to half their premiums.
Till now, public sector general insurance entities were passive distributors of crop insurance schemes administrated by the state owned Agriculture Insurance Company of India (AIC). National Insurance has collected close to Rs. 750 crore as premium from the Kharif and ensuing Rabi season in 2016-17 under the scheme.
United Insurance has collected Rs 1,300-1,400 crore as premium from PMFBY in the earlier kharif season whereas Oriental Insurance could not bid for PMFBY in the earlier kharif due to non-availability of actuaries.