“AIC is a lean organization, but we are very much technically sound in terms of technical expertise and robust database. However, we lack infrastructure. Our cost of management is low, at around 2-3 per cent, whereas for other organizations, the management cost is around 25 per cent. Hence, we will use our expertise in premium collection, claim management and settlement, while using the infrastructure of other companies,” said Chaudhary.
is based on actuarial calculations, and rates are based on risk perception. Thus, premiums differ, based on crops and regions. However, a farmer pays only a flat 2 per cent premium, the rest is provided by the central and state governments. On average, the premium comes to 12-15 per cent, with the state and central governments bearing 5 per cent each.
Over the last few years, technological challenges, especially for crop cutting experiments, have posed discrepancy in claim settlements.
“Technology will and is streamlining PMFBY
implementation. Some technological innovations have already been initiated viz., PMFBY portal by the ministry of agriculture, which has eased enrollment under the scheme. Further, crop cutting experiments data is now being captured and transferred through mobile apps. However, there is no robust technological soluation for loss assessment till date, which is acceptable to all stakeholders,” said Chaudhary.