Unified Insurance Package for Farmers to Cover Tractor

Rolled out along with the Prime Minister's Crop Insurance Scheme, farmers will be able to avail of bare minimum insurance cover for their crop, tractors, pump-sets, self and accidents under a united package, for a premium of Rs 5,145 a year.

The pilot for the united package comprises seven products, including the crop insurance scheme. The unified package would be rolled out on a pilot basis in 45 districts of the country and depending on the response it could be later scaled up.

A senior government official said "Under the united package, any farmer who wants to avail the huge subsidy given under the new crop insurance scheme has to compulsorily go for any three components out of a total package of seven products. This would guarantee his full financial security." The Centre and state governments plan to subsidise up to 90% of the total premium a farmer has to pay under the new crop insurance scheme.

The seven insurance components apart from Fasal Bima Yojana in the united package are fire insurance; personal accident coverage of Rs 2 lakh under the Pradhan Mantri Suraksha Bima Yojana; agriculture pump-set insurance; agriculture tractor insurance provided by a third party; life insurance through Pradhan Mantri Jeevan Jyoti Bima Yojana; and student safety insurance.

The state-run Agriculture Insurance Company will offered the entire package or any other general insurance company. The accidental coverage and the life coverage will be as provided by the already existing Pradhan Mantri Suraksha Bima Yojana and Jeevan Jyoti Bima Yojana.

Source:http://www.business-standard.com/