New Delhi: Eleven private insurers are set to register profits of over Rs 3,000 crore cumulatively from crop insurance business for the year-ending March 2018 as against the Rs 4,085-crore losses incurred by state-owned insurers, raising questions about allocation of business. Premiums collected by private insurers from the government were higher than the claims made by farmers for crop losses due to floods, earthquakes or shortfall of rain during the year.
According to the annual report of the Insurance Regulatory and Development Authority of India (IRDAI), as much as Rs 11,905.89 crore was collected by 11 private sector insurers as premium, but they faced insurance claims of only Rs 8,831.78 crore.
Five PSU insurers collected Rs 13,411.1 crore in premium from the government and farmers, but farmers made claims of Rs 17,496.64 crore due to crop losses. Among PSU insurers, Agriculture Insurance Company of India Ltd (AIC) accounted for the bulk of the losses.
The central and state governments pay 98 per cent of the premium, and farmers contribute just 2 per cent.