The Centre has allowed states to set up their own insurance companies for implementing Pradhan Mantri Fasal Bima Yojana (PMFBY), a senior Agriculture Ministry official said today.
The move comes after several requests from states as well as observations made by Comptroller and Auditor General (CAG) in its 2017 report that old crop insurances schemes which have now been merged with PMFBY, were poorly implemented during 2011-2016.
"We have allowed the states to establish their own crop insurance companies to implement PMFBY subject to participation in bidding process," the official told PTI.
Presently, five public sector insurers and 13 private insurance companies are empanelled for implementation of the scheme, the official said.
The public insurers include Agriculture Insurance Company of India (AIC), United India Insurance Company (UICC), National Insurance Company (NIC), Oriental Insurance Company (OIC) and New India Assurance Company (NIAC).
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