Context: Agriculture Insurance Company of India (AIC) has recently released compensation for damage of kharif crops of 2021 after paying claims under the Prime Minister’s Fasal Bima Yojana.
About Agriculture Insurance Company of India (AIC):
- It is central public sector undertaking under the ownership of Ministry of Finance.
- It was incorporated under Indian Companies Act 1956, in 2002.
- AIC has taken over the implementation of National Agricultural Insurance Scheme (NAIS) which, until FY 2002-03 was implemented by General Insurance Corporation of India.
- In addition, AIC also transacts other insurance businesses directly or indirectly concerning agriculture and its allied activities.
- Promoters (Share Holding):
- General Insurance Corporation of India – 35 %
- National Bank for Agriculture And Rural Development (NABARD) – 30 %
- National Insurance Company Limited – 8.75 %
- The New India Assurance Company Limited – 8.75 %
- The Oriental Insurance Company Limited – 8.75 %
- United India Insurance Company Limited – 8.75 %
- Headquarters: New Delhi
- National Agricultural Insurance Scheme
- National Agricultural Insurance Scheme (NAIS) was introduced by the Government of India to provide insurance coverage and financial subsidy to the farmers in the event of crop losses suffered on account of natural calamities, pests and diseases.
- This scheme aims to help stabilise farm incomes, particularly in disaster years.
About Prime Minister’s Fasal Bima Yojana:
- Launched in 2016, the Pradhan Mantri Fasal Bima Yojana (PMFBY) is a large-scale crop subsidy insurance scheme that was aimed to safeguard farmers.
- This flagship scheme was designed in line with the ‘One Nation, One Crop, One Premium and replaces three older initiatives—Modified National Agricultural Insurance Scheme (MNAIS), Weather-based Crop Insurance Scheme and the National Agricultural Insurance Scheme (NAIS)—by incorporating their best features and removing inherent shortcomings to improve insurance services available to farmers.
- This scheme is being administered by the Department of Agriculture, Cooperation and Farmers’ Welfare under the Ministry of Agriculture, along with empanelled general insurance companies.
Source: The Hindu