HYDERABAD: The State government has enhanced the premium amount to be paid to the LIC for the implementation of Rythu Bima Scheme. This year, the State government will pay Rs 3,555.94 as an annual premium to each farmer, which include GST. In addition, the State government will also pay stamp duty on behalf of the LIC.
The basic premium per farmer under Rythu Bima is Rs 3,013.50; CGST at 9 per cent is Rs 271.22 and the SGST at 9 per cent is 271.22. The stamp duty to be paid by the government will be Rs 30.94 crore. The stamp duty amount has to be paid by the LIC and the insurance company requested the government to pay the stamp duty, as it was incurring losses.
The LIC paid more money to farmers last year under Rythu Bima than the premium it collected, thus incurred losses. According to orders issued by principal secretary Agriculture C Parthasarathi on Wednesday, the Rythu Bima will be operational from August 14.