Is Bigger Better?

After Successfully Rechristening the Fasal Bima Yojna, the Government Has Proposed an Overhaul of the Health Insurance Scheme.

- Anand Adhikari

THREE YEARS AGO, the government launched a subsidised crop insurance policy to help farmers. The farmers now pay only a small 1.5-2 per cent of the sum assured for crops whereas the balance, the bulk of the premium, is shared equally by the Centre and state governments. The scheme has managed to provide an insurance cover of close to ₹2 lakh crore with premium outgo of ₹22,000 crore plus from the exchequer. Experts often criticise the crop insurance scheme, accusing private players of reaping rich dividends while the risk is getting transferred to re-insurers, mostly the state owned GIC. The Union Budget 2018/19 has a new proposal on similar lines. It has proposed a subsidised health protection plan for 10 crore poor families with a cover of Rs 5 lakh per family per annum.