The Hindu Business Line : `Farmers happy with rain insurance scheme'

FARMERS in Andhra Pradesh, and the country in general, are happy with the rain deficit insurance scheme (Barish Bima Yojana) introduced by IFFCO-Tokio General Insurance Company Ltd and the claim settlement is hundred per cent, according to Mr N.K Kedia, Executive Director.

He was speaking at a function organised here on Monday for distributing cheques to farmers for deficit rainfall. Mr Vijayarama Raju, Minister for Forests, handed over the cheques to farmers.

Mr Kedia said the scheme was mainly for farmers in rain-fed areas. Currently, it was being implemented in Vizianagaram, Krishna, Guntur and Karimnagar. It would be extended to other districts. In all, the company had settled claims made by 387 farmers worth Rs 8.27 lakh in Andhra Pradesh.

He said the scheme was being implemented in 100 districts of seven States in the country. The policy was being sold through co-operatives, NGOs and co-operative banks.

"It can be sold to individual farmers too, but it is difficult to service such policies. It will be easier in the case of big farmers,'' he said.

Mr Kedia said the kharif crop was being covered under the policy. "Of course, the product can be improved and modified, depending on the needs of the farmers and their response. Now, we are covering only deficit rainfall. Excess rainfall, snowfall and other calamities can also be covered,'' he said.

He said the company was also implementing "Sankat haran bima yojana'' for farmers. "Under the scheme, all farmers buying a bag of urea from the IFFCO are covered, subject to a ceiling of Rs 1 lakh. We settled 4,500 claims last year in the country worth Rs 23 crore,'' he said.

He said the company had earned premium revenue of Rs 501 crore and Rs 23.6 crore of profit by March 2005. It had a market share of 4.21 per cent.