Dispelling concerns that private insurers are profiting from the crop insurance scheme PMFBY, Agriculture Minister Radha Mohan Singh on Thursday said even states have now been allowed to set up their own insurance companies.
Pradhan Mantri Fasal Bhima Yojan (PMFBY), launched in 2015, is being implemented by five public and 13 private insurance companies which are impaneled.
Under the scheme, premium to be paid by farmers is kept low and the claims are fully settled.
Responding to a question in the Rajya Sabha, Singh said the settlement of claims during the two years preceding 2016- 17 remained higher because of bad weather (drought). But claims in 2016-17 were less on account of good rains.
