The officials of the Life Insurance Corporation of India have urged the State government to review the premium being paid for Rythu Bima, farmers’ insurance scheme, in line with the actual costs incurred by the insurer in maintaining the scheme.
The LIC officials who attended a meeting convened by Chief Secretary S.K. Joshi on Thursday told him that the LIC paid ₹ 735.25 crore to the families of 14,705 farmers who died and claims relating to some cases were under process. The LIC had taken up the insurance scheme without profit motive and the government should consider reviewing the premium. The Chief Secretary assured them that he would take the matter to the notice of Chief Minister K. Chandrasekhar Rao and renew the premium after obtaining his content.
Meanwhile, officials informed the Chief Secretary that the term of the Rythu Bima under which 30.92 lakh farmers were enrolled would end on August 13. The Government had paid premium of ₹ 704.16 crore to the insurer at the rate of ₹ 2,271.5 per farmer and efforts had been made to ensure that the families of farmers who died received the insured amount at the earliest.