The central government has formed a working group of officials from all concerned stakeholders to recommend ‘sustainable, financial and operational models’ to present a revamped Pradhan Mantri Fasal Bima Yojana (PMFBY) from kharif 2022 season.
The centre had recognized certain factors like the hardening of premium market, lesser participation by tenders and insufficient underwriting by insurers that ailed the implementation of the PMFBY.
“With a view to achieving sustainable underwriting capacities of insurers and rationalised premium pricing to cut subsidy burden on the government, the working group is expected to address the demand of an alternative model,” a source in the know of developments was quoted by the Financial Express.
This group, which consists of officers from the centre and state along top executives of the public sector insurance companies, will be submitting its report in six months.
It will discover reasons for the high premium rates and suggest a mechanism to rationalise them. They will work out the possibility of forming a risk pool as well. Moreover, the responsibility of the state governments in this overhauled scheme will have to be defined as they will be the implementing agencies of the same.
The likes of Jharkhand, Bihar, Gujarat, Andhra Pradesh and Telangana have already dropped out of the PMFBY citing various reasons.
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