AIC enters coinsurance deal with 3 public sector insurance firms for PMFBY

Agriculture Insurance Company (AIC) has entered a co-insurance agreement with three other public sector general insurance firms—New India Assurance, National Insurance and United India Insurance for Prime Minister Fasal Bima Yojna (PMFBY).

Under the scheme, while AIC will use offices, manpower and rural reach of the three companies, it will offer 12.5 per cent of the premium collected to each of the three companies. This will help AIC reduce overhead cost, and give competitive advantage, said Rajeev Chaudhary, CMD (officiating), AIC.

At present, AIC accounts for nearly 50 per cent of the premium collected under PMFBY. Last year, its total