Regulator Irdai has permitted micro-insurance agents to solicit and market crop insurance schemes like Pradhan Mantri Fasal Bima Yojana (PMFBY).
The Insurance Regulatory and Development Authority of India (Irdai) said it received requests from some stakeholders to categorise government-sponsored crop insurance schemes as micro-insurance products irrespective of the amount of sum insured under the individual policy.
They wanted Pradhan Mantri Fasal Bima Yojana (PMFBY), Weather Based Crop insurance Scheme (WBCIS) and Coconut Palm Insurance Scheme (CPIS) to be categorised as micro-insurance products.
Under IRDAI (Micro Insurance) Regulations 2015, the maximum amount of cover for crop insurance is fixed at Rs 1 lakh per cover.
The regulator, in a communication, said Irdai chairman has decided to allow government insurance schemes without any limit on sum insured covering the non-loanee farmers to be solicited and marketed by micro insurance agents.
"Micro Insurance Agents can sell to the non-loanee farmers the (three) government sponsored crop insurance schemes offered by an insurer which covers the crop of the policyholder, over the area of the insured field," it said.
However, the sum insured/premium/premium rate per crop/ unit area/tree, as the case maybe, will remain as notified under the respective government sponsored insurance schemes without any change.
Micro-insurance agents, include self-help groups, non- government organisations, micro-finance institutions, RBI regulated NBFC-MFIs, primary agricultural cooperative societies and business correspondents appointed by banks.
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