Crop Insurance Subsidy Disbursement From States “Lukewarm”, AIC Chairman Says
Disbursement of crop insurance premium from states so far has been lukewarm. But the Agriculture Insurance Company of India is in talks with them to provide timely subsidies and for speeding up the process in order to help farmers in distress.
That’s the word coming in from T Alamelu, chairman and managing director of AIC.
In the year 2016-2017, Tamil Nadu sought the highest number of claims, as the state faced severe drought, followed by other states like Karnataka, Gujarat and Maharashtra, Alamelu told BloombergQuint on the sidelines of International Insurance Conference in Hyderabad.
“In adverse years, there will never be a profit and the entire system needs to understand that,” she said, adding that for crop insurance, no company can work with huge profit margins, nor are the entities expecting it, “but in a good year they would like to have at least 5-10 percent”.
Delay in processing subsides from states, late yield data, and inadequate crop cutting experiments being conducted, is causing delay in claims settlement for farmers, she said.
Watch the full interaction here: