The committee will be chaired by additional secretary (Crop Insurance), Department of Agriculture & Farmers Welfare (DA&FW) and some of the other members are Devesh Srivastava, former CMD, GIC Re, Girija Subramanian, CMD, New India Assurance, Saurabh Mishra, partner, Financial services, Kearney Consulting Thomas M Devasia, former member, Non-Life and Koli Rao, president & senior advisor,Aon
New Delhi: The government on Tuesday has formed a high level panel to reassess the Alternative Risk Transfer Models as well as pricing and reinsurance mechanism under Prime Minister Fasal Bima Yojana(PMFBY).
The committee will be chaired by additional secretary (Crop Insurance), Department of Agriculture & Farmers Welfare (DA&FW), Devesh Srivastava, former CMD, GIC Re, Girija Subramanian, CMD, New India Assurance, Thomas M Devasia, former member, Non-Life, IRDAI, Koli Rao, president & senior advisor,Aon, Ritesh Chauhan, secretary, department of Animal Husbandry, Government of Himachal Pradesh, Saurabh Mishra, partner, Financial services, Kearney Consulting and representatives of state governments of Andhra Pradesh and Maharashtra.
The Department of Agriculture & Farmers Welfare (DA&FW) under the Ministry of Agriculture & Farmers Welfare (MoA&FW) during its consultation with insurance regulator IRDAI and other stake holders had received comments regarding need to reassess the alternative risk Transfer Models and how to further streamline implementation of PMFBY, said the MoA&FW.
The PMFBY was launched in 2016 and so far 7,708 lakh farmers have received insurance cover under the scheme.
“Farmers have made crop insurance claims of Rs 1,74,432 crore under the scheme, even though the farmer’s premium was only Rs 32,000 crore,” Shivraj Singh Chouhan,Union Minister of Agriculture and Farmers Welfare had recently said.
The panel will address the main agenda of re-evaluation of Alternative Risk Management by analysing the feasibility of current Alternative Risk Management Mechanism (ARTM) for managing risk and their effectiveness in addressing the scheme’s challenges.
The other issues the panel will look into are-
-Impact analysis of ARTM application on quoted APR(Annual Percentage Rate) vs Burn Cost during Kharif 2023 tender cycle,
-State-specific analysis for adopting suitable ARTM Models in comparison to the traditional PMFBY model.
-Assessment of the government’s premium subsidy liability share under the ARTM Models,
-Identification of drawbacks of ARTM and suggestions for improving the models.
The panel will also evaluate another agenda of in-house risk analysis and pricing on the National Crop Insurance Portal(NCIP) by analysing current crop insurance pricing methodologies employed by insurance industry, review and recommendations on pricing methodologies applied for in house Risk assessment and price discovery on NCIP for subsidy module, review methods put in place for incorporation of loadings on calculated burn cost.