Crop Insurance Firm Company In Rajasthan
Rajasthan state government soon may launch a new insurance company for the benefit of the farmers. It has been reported that the government is keen to start a Crop Insurance Company to address the problems of the farmers in the state.
The company hasn’t been launched yet. Chief Minister Smt. Vasundhara Raje may launch the company as soon as other formalities will be completed. The said company will start operating following the rules and regulations of IRDA.
- Reason behind this company: Increasing problems of farmers regarding crops is a major issue in the state. Lot of people are facing problems of late compensation payment, wrong claims and many more. To clear these problems state is starting up this new company.
- Licence Authority: Insurance Regulatory and Development Authority will be responsible for the licence of the company. As of now the IRDA hasn’t given the licence to the state for the same.
- Non-profit organisation: As it the company will run by the state government of Rajasthan it will be a non-profit organisation. This means no delay or company profit oriented schemes will be there. It will be completely dedicated to the welfare of the people.
- Implementation: Though the company hasn’t launched yet, the ministry of agriculture has stated that the state run company may tie up with some of the privately owned companies to provide quick and better services. It will be a low profit margin partnership.
- Budget: The Company, before it starts, needs to issue licence from IRDA. To get the licence the company has to pay 1.5 times more than the sum of total insured capital. As of now the state hasn’t mentioned about the details of budget allocation.
- If the company floats in Rajasthan, then it will be the first ever state company in India. The state is determined to start this company as many problems will be sorted with this. The state agricultural ministry found the proposals and principles convincing.
- If the company gets licence and starts operating soon, the farmers can solve their issues within the state. They do not require going for central run schemes like Pradhan Mantri Fasal Bima Yojana and such.
Having this company at state level will lead to more transparency and quick actions in the state. It will be easier for the local authorities to process the compensation quickly.