Subsidy to farmers
1 Upto No Subsidy
>2
–
5%
25% subject to minimum net premium of 2.00%
3
>5
–
8%
40% subject to minimum net premium of 3.75%
4
>8
–
12%
50% subject to minimum net premium of
4.80%
5
>12% -20%
60% subject to minimum net premium of
6.00%
4.9.7. Government’s support
The government’s support in an actuarial regime would be in terms of premium subsidy,
leaving all claims to the insurers. The average actuarial premium rate in the country with proposed improvements would be in the range of 15 -18% of sum insured. Considering that premium for farmers is capped between 2% - 8%, the balance of premium will have to come from the government. The sharing between centre and states can be decided keeping in mind the premium rates and the financial outlay. However, with reference to catastrophic claims for developmental lines, the government would be required to pay claims exceeding of risk premium.
Share with your friends: |
