Hyderabad: The State government today issued orders extending the Rythu Bhima scheme for 2019-20 to help kin of deceased farmers in the State. With this, the farmers’ families will get financial assistance from the government Rs 5 lakh on death of the farmer. The government has earmarked Rs 934.19 crore for implementation of the scheme.
Chief Minister K Chandrasekhar Rao has taken the decision to help the kin of deceased farmers in the State and instructed the officials to take necessary measures. The scheme will be effective from August 14 this year to August 13 next year. There are some 31.10 lakh farmers across the State. Chief Minister KCR had launched the Rythu Bhima scheme on August 15 last year. The State government has extended the scheme by one more year as the scheme will come to an end on August 14 this year. On behalf of the government, the LIC will provide Rs 5 lakh to the kin or nominee of the farmer in 10 days after death.
The scheme was launched with the objective of providing financial relief and security to the family members/dependents of the deceased farmer in case of his/her death. In Telangana, majority of the farmers are small and marginal and farming is the sole source of livelihood to them. In the event of the death of the farmer/ bread winner, their families face severe financial problems even for their day-to-day needs. The farmers Group Life Insurance Scheme (Rythu Bima) ensures financial security and relief to the bereaved members of the farmer’s family.
The Commissioner & Director of Agriculture said the success of the scheme implementation was reflected in terms of timely settlement of claims to the designated nominee/Appointee of deceased enrolled farmer within 10 days of his/her death as envisaged under the scheme. The Commissioner and Director of Agriculture requested the Government for continuation of the scheme for one more year i.e. August 14, 2019 to August 13, 2020.
The Regional Manager (PGSG) said the LIC of India has been doing their best to make the flagship program of the Government of Telangana a grand success and reach out the benefits of the scheme to the intended beneficiaries as per the Scheme rules without any profit orientation. LIC had the pleasure of commencing the scheme on a prestigious note, which is crucial in terms of enrolment of the members, IT infrastructure, linkage and constant liaison with the concerned officials.
With the actual experience of mortality rate and other related expenses, it was felt necessary to revise premium rate upwards to ensure the viability of the scheme on the basis of actual experience on mortality and expenses. Based on discussions held, LIC proposed the following approach for the year 2019-2020 for arriving at the premium considering the following factors.
Pricing at the mortality experience and stamp duty incurred in the immediate preceding year; GST on premium at prevailing rates; As the two components are the direct pay outs from LIC of India, LIC factored an administrative charge @ 5% on the mortality premium to meet the various fixed and variable expenses on IT and manpower and expected loss. (In the year 2018-19, the loss incurred to premium collected was approximately 54.42%)
LIC informed that it is proposing cost based pricing and not profit based pricing and after negotiations as per the revised proposal submitted by the LIC, the premium per farmer will be: Premium per farmer 3013.50 ; CGST 9% 271.22 ,SGST 9% 271.22 State revenue receipt; Stamp Duty 30.94 Crs State revenue receipt.
The State has to pay an amount of Rs 3013.50 Premium + Rs.542.44 (GST) i.e., Rs.3555.94 per farmer. In addition to the above LIC requested for payment of an amount of Rs.30.94 Crores as an additionality towards Stamp duty to be paid by them.
The guidelines issued in the G.O.Ms. No.63, Agriculture & Cooperation (Agri.II) Department, dated June 19, 2018 are also applicable for the 2nd year of scheme. The 2nd year of scheme will be operational from August 14, 2019 to August 13 2020. All the pattadars in the Age group of 18 to 59 years as on August 14, 2019 (born between August 14, 1960 to August 14, 2001 both days inclusive) shall be eligible for enrolment under the scheme .The pattadars’ data will be obtained from CCLA.(NSS)
