Refund crop insurance: Farmers

Tribune News Service

Shimla, March 3

As the Centre has made the Pradhan Mantri Fasal Bima Yojna (PMFBY) optional, farmers have sought refund of their premium amount banks have debited from their accounts without their consent. A majority of farmers have opted out of the scheme, sources said

According to official sources, the decision was taken recently by the Cabinet chaired by the Prime Minister making the yojana optional.

Earlier, the crop insurance scheme was mandatory for farmers, who avail bank loan or Kisan Credit Card. The banks should revert the amount to their accounts, said an official.

He said the PMFBY had been made optional because over 60 per cent farmers had taken crop loans. The banks were exerting pressure on farmers to pay insurance premium and refund loans.

Theog legislator Rakesh Singha said most banks were acting like agents of the insurance companies. The PMFBY was launched across the country in 2016 whereas the scheme was optional for non-loanee farmers.

Director, Horticulture, Dr MM Sharma said, “Banks will have to refund in case the farmers opt out of the scheme”, he added.