- Challenges:
- States not paying their part of the premium subsidy on time.
- Delay in settlement of claims to farmers.
- Insurance companies making huge profits.
- Central Govt. introduced a cap on its premium share (30% for unirrigated, 25% for irrigated).
- This means states bear extra burden if premium exceeds cap.
- Addressing Challenges:
- Ensuring timely payment of premium subsidy by states.
- Streamlining claim settlement process to reduce delays.
- Reviewing premium rates and profit margins of insurance companies.
- Leveraging technology (drones, satellites) for accurate assessment and faster claims.
- The new central government premium cap shifts more risk to states.