Bharti AXA General Insurance July 23 said it has bagged Rs 800-crore crop insurance mandate from the governments of Maharashtra and Karnataka to insure their farmers under the Pradhan Mantri Fasal Bima Yojana (PMFBY).
The insurer has a three-year period mandate to implement PMFBY in six districts of Maharashtra and three districts of Karnataka.
Farmers in the districts of Ahmednagar, Nashik, Chandrapur, Solapur, Jalgaon and Satara in Maharashtra and Dharwad, Mysuru and Kodagu in Karnataka can insure their Kharif crops till July 31 through their respective banks or authorised representatives of the company.
Sanjeev Srinivasan, Chief Executive Officer & Managing Director, Bharti AXA General Insurance said, “We aim to provide insurance coverage and financial support to the farmers in the failure of any of the notified crop as a result of natural calamities. Apart from implementing crop insurance for farmers in both the states, we will also capitalize on innovative technologies and digital capabilities for sharing relevant information about the PMFBY and ensure speedy and hassle-free claim assessments in the respective districts.”
Bharti AXA General Insurance is a joint venture between Bharti Enterprises and global insurance firm AXA.
Launched in 2016, PMFBY compensates farmers if any of the notified crops fail due to natural calamities, pests and diseases. The scheme seeks not just to insulate farmers from income shocks, but also encourage them to adopt modern agricultural practices.
Under the partnership with the state governments, the crop insurance would cover the farmers in these districts of Maharashtra and Karnataka against any losses in crop yields on area approach basis arising out of a wide range of external risk.
These risks include flood, dry spells, drought, landslides, cyclones, hurricane, pest and diseases and localized calamities among others. It offers insurance cover for all stages of the crop cycle including pre-sowing to harvesting and post-harvest risks.
Bharti AXA General Insurance has been participating in the government sponsored crop insurance schemes even in the past and has insured 2.84 million farmers from different states Bihar, Karnataka, Gujarat, Jharkhand and Maharashtra.
Unlike previous schemes, PMFBY is open for both farmers who have taken loans (loanee) as well as those who have not (non-loanee). The scheme covers food crops (cereals, millets and pulses), oilseeds as well as horticultural crops.
Here, farmers pay 2 percent of sum insured as the premium for Kharif crops while it is 1.5 percent of the sum insured for Rabi crops.