General insurers reduced their exposure to crop insurance under the government-backed Pradhan Mantri Fasal Bima Yojana (PMFBY) during FY24 despite the government's push to expand the coverage of the crop insurance scheme.
Gross direct premium underwritten by insurers declined by 4.17% to INR306.77bn ($3.67bn) during the financial year ended 31 March 2024 (FY24) from INR320.11bn in FY23, even as farmers faced crop losses due to floods, unseasonal rains, and heatwaves, reported The Indian Express.
The decline was mainly due to the 32% fall in premium income underwritten by state-owned Agriculture Insurance Company (AIC) to INR98.90bn during FY24 from INR146.19bn in FY23 ago, according to data released by the General Insurance Council. AIC is the leading crop insurer in the country. It paid claims totalling INR123.53bn in FY24.
State-owned general insurer, Oriental Insurance, cut reduced its exposure to agriculture to INR89.4m in FY24 from INR17.52bn a year ago. Government-controlled New India Assurance, the largest non-life insurer in the country, reported a negative premium underwritten of INR344.1m as against INR113.8m in FY23.
Of the 25 general insurers in India (excluding AIC which is a specialised agriculture insurer), eight did not offer crop insurance in FY24.
To read the original text, please click here.