The Telangana government has extended Rythu Bima, a life insurance scheme for farmers, for one more year. It will pay Life Insurance Corporation (LIC) ₹934 crore as premium for ₹5-lakh cover to 31 lakh farmers.
LIC has asked the State government for a raise in the premium-- to ₹3,013 per farmer (after GST and and stamp duty, the cost per head is put at ₹3,556), an increase of about 55 per cent over last year’s premium per head.
The insurance scheme, which is being offered to farmers in the age group of 18-59, was launched last year. The kin of about 15,000 farmers, who died during the past one year, received about ₹750 crore. As many as 31 lakh farmers have joined the scheme.
Considering the high mortality rate and the cost of implementation, LIC wanted the government to revise the premium.
As the scheme was coming to end on August 14, the Department of Agriculture had sent a proposal to the State government asking it to extend the scheme for one more year.
The government issued an order on Wednesday sanctioning the premium amount to be paid to LIC. The premium for the year beginning August 14 is put at ₹3,013.50 per farmer. This would attract a GST of ₹542.50 and a stamp duty of ₹30.94 crore.