MUMBAI, 15 JULY, 2022 (GPN): Comment on IRDAI Circular on Agri:

“Agriculture and allied sector employ over 50% of the country’s population, and 70% of our rural population is, directly and indirectly, dependent on agriculture for their livelihood. According to SAAH report, India has somewhere between 90 million to 150 million farmers. However, under PMFBY, only 25 million farmers were covered in FY21 for Rabi and Kharif, leaving a huge portion of the farmer population without any protection. We witnessed similar trends in the previous years as well. This has created an urgent need to develop smart insurance solutions for farmers that will financially protect them.

We welcome the move by IRDAI as it will increase the much-needed insurance penetration in the country. It will encourage insurance companies to develop innovative products for Agriculture and allied activities and customise products depending on climatic patterns of a region, soil and crop type Etc. IRDAI’s decision will also boost insurance adoption among the farmers bringing relief from constantly worrying about the changing climatic conditions and their consequent impact on crops. In the long run, having financial security will encourage farmers to adopt progressive farming practices, high-value inputs and better technology in agriculture.” Mr. Rakesh Jain, CEO of Reliance General Insurance.