PM crop insurance scheme back in favour as insurers return to do biz

Insurance companies such as ICICI Lombard, Tata AIG, Cholamandalam and Oriental Insurance have returned to offer cover under PM Fasal Bima Yojana(PMFBY) this year. All these four insurance companies had quit crop insurance business four years ago, citing unviable claims amount. These companies have opted to return as several steps have been taken in the last few months. These include infusing technology and reducing crop insurance business risk.

Besides, a new entrant Kshema General Insurance has also been empanelled and is bidding for Kharif 2023 in Madhya Pradesh, said a senior official in Agriculture Ministry. In 2019-20, these private insurance companies had opted out of the flagship PMFBY scheme due to high claims ratios in the States where they operated in the previous year, leading to losses from the business. However, they continued with the empanelment in last four years.

Oriental Insurance, who quit last year, has also returned in 2023 with its participation in the bidding process in Maharashtra, the sources said. Both Tata AIG and ICICI Lombard have participated in bids in Maharashtra, too. Cholamandalam is said to have bid in Uttarakhand and Karnataka, the sources added.