Farmers insurance scheme to face hurdle due to IRDA regulations

​Khammam: The new life insurance scheme under the Rythu Bandhu Padhakam (RBS) for the farming community to be launched by Chief Minister K Chandrashekar Rao on Independence Day does not seem to be an easy process for the officialdom. 

In all probability, the scheme is going to bump into certain hurdles due to the insurance regulations framed by the Insurance Regulatory and Development Authority of India. 

The RBS insurance scheme is intended to cover all farmers in between the age group of 18 to 60 years. Under the scheme, every farmer will have an insurance cover of Rs 5 lakh irrespective of the reason for his or her death, including natural death.

The insured amount will be paid to the nominee proposed by the insured farmer within 10 days of the claim. An understanding has also been reached with the Life Insurance Company in this regard by the State government.

The officials categorised the farmers into three groups. Under the first group, farmers in the age group of 18 -30 years are included. The second group includes farmers in the age group of 30 to 40 years and the final group from 40 to 60 years. The premium amount to be paid will range from Rs 800 to Rs 1,100 depending on the age of the farmers from 18-50 years.

The district leader of the CPM Srinivas Rao said there were certain problems in the perfect implementation of the insurance scheme because as per the rules of LIC the insurance would not be given to those who crossed 55 years of age. So, the farmers who are above 55 years of age are not going to get the benefit of the insurance scheme.

One must wait and see what steps the State government will take for the perfect implementation of the insurance scheme for all eligible farmers under Rythu Bandhu, he added.

In a recent meeting held with representatives of LIC at Pragathi Bhavan in Hyderabad, Chief Minister K Chandrashekar Rao discussed about the possibilities of implementation of the insurance scheme for the farmers who crossed 55 years of age.

The LIC officials reportedly informed the Chief Minister that by increasing the premium amount to be paid under the scheme, there will be some possibilities for extending the scheme for farmers who crossed 55 years age. However, officials confirmed that the policy would not be applicable under any circumstances to the farmers who crossed 70 years of age.