In a bid to reduce the financial burden of insurance premiums on farmers, Rajasthan\’s Minister of State for Cooperation (Independent Charge), Gautam Kumar Dak, has proposed the creation of a “Risk Relief Fund” under the cooperative structure. He emphasized that providing maximum relief to farmers is a top priority for the state government.
Dak made the remarks while reviewing the progress of the Sahkar Jeevan Raksha Bima Yojana on Thursday at the Apex Bank auditorium in Jaipur. He pointed out that in recent years, there has been a considerable mismatch between the premium amounts collected by insurance companies and the claim payouts given to farmers.
Disparity in Premium and Claim Amounts
“The premium collected is significantly higher than the amount being paid out in claims, creating financial strain for farmers,” Dak said. He stressed that to protect farmers from arbitrary decisions by insurance companies, a Risk Relief Fund should be introduced. This fund would not only ensure better claim settlements but also reduce the premium load on farmers.
Equal Premium Rates for All Age Groups
Currently, insurance companies have varying premium rates based on different age categories. To address this disparity, Dak proposed that under the Risk Relief Fund, a uniform premium rate be applied across all age groups of farmers.
He suggested a provision where farmers would pay 1% of the loan amount as insurance premium, which is significantly lower than the current rates charged by insurance companies. This premium structure would be proportionate to the loan amount, offering relief to small and marginal farmers.
Online and Offline Registration
The minister also proposed allowing both online and offline registration options for farmers to access the benefits of the new scheme. He called for all stakeholders, including officials from cooperative banks, Primary Agricultural Credit Societies (PACS), and land development banks, to share their suggestions, which would be considered for inclusion in the final scheme after due evaluation.
Officials and Stakeholders Present
The meeting was attended by Manju Rajpal, Principal Secretary and Registrar of Cooperative Societies, Sanjay Pathak, Managing Director of Apex Bank, Sandeep Khandelwal, Additional Registrar (Second), and representatives of various central cooperative banks, land development banks, and PACS.
Stakeholders welcomed the initiative, expressing gratitude to Minister Dak and asserting that the proposed measures would bring much-needed relief to the farming community.
