Farmers in Raj to get higher insurance cover with crop loan

The Rajasthan government has raised the insurance cover by Rs 1 lakh to Rs 6 lakh for farmers who will avail crop loan from cooperative banks in the state, as it aims to bring around 25 lakh peasants under the scheme.
The Rajasthan government has raised the insurance amount by Rs 1 lakh in the present fiscal year in the 'Raj Sahakar Personal Accident Insurance Scheme' targeted to cover more than 25 lakh farmers, a state minister said.
Last year, the insurance amount was Rs 5 lakh and 23.31 lakh farmers were covered under the insurance scheme.
Close to seven lakh farmers have been associated with the scheme so far in this year who will get an insurance cover of Rs 6 lakh by giving only Rs 27 as yearly premium.

"Rajasthan is the first state in the country which is providing high insurance cover in very nominal premium. We target to cover more than 25 lakh farmers with the scheme this financial year," state cooperative minister Ajay Singh Kilak said today.
While a farmer will give Rs 27, the Central Cooperative Bank and the Rajasthan State Cooperative Bank will give Rs 13.50 each as premium to insurance company.

"The cooperative department is taking all decisions and steps for the welfare of farmers and to ensure that income of farmers gets doubled by the year 2022. We have ensured social security for crop loan borrowers and we are getting encouraging feedback from them," he said.

In other states, the amount of premium is more than that in Rajasthan and the sum insured is low, the minister claimed.
The cooperative department is providing this facility to other account holders of cooperative banks also on annual premium of just Rs 54.
There are about 40 lakh farmers in the state and close to 30 lakh of them are involved in the crop loan system.
The government has fixed a target of Rs 15,000 crore for the distribution of interest free crop loan for farmers in the current fiscal and more than 25 lakh farmers will be covered under the insurance scheme of Rs 6 lakh.

On permanent disability of one eye, arm or leg, the insured farmer will get Rs 3 lakh, while Rs 6 lakh will be paid in case of permanent disability of any two limbs or death in accident.
As per the assessment of the state cooperative department, Haryana is providing Rs 50,000 insurance cover, Madhya Pradesh Rs 2 lakh, Gujarat Rs 4 lakh and Punjab Rs 5 lakh insurance cover.
Punjab is charging Rs 110 as yearly premium for an insurance cover of Rs 5 lakh whereas Gujarat is charging Rs 44 as yearly premium.