Insurance Schemes for Pak Farmers
First time in the history of Pakistan.
CIS scheme has been launched through the Bank of Punjab and
two insurance companies of the national level but it is hoped
that with the passage of time, other banks and insurance
companies will also join it. It will compensate the farming
community from loss of their crops caused by unfavourable
weather conditions and natural calamities. Under the scheme,
if any natural calamities like flood, drought, etc hit a
district, it would be declared a ‘disaster area’ and 50-70pc
payment along with relief in agricultural credit and exemption
from the provincial taxes would be provided to the farmers.
will be able to get life insurance as well as crop insurance
under the new agriculture insurance scheme launched by the
Bank of Punjab, Chief Minister Chaudhry Pervaiz Elahi said on
Under this scheme farmers with 1-50 acres of land would be
compensated 50 to 70 percent of the crop value in the
eventuality of crop loss caused by natural calamity while
their entire loan would be covered. "Moreover, the scheme also
include life insurance for one-year with the claim of Rs
500,000," he added.
To avail the crop insurance scheme, the bank would charge
additional two-percent of the loan, on the top of eight
percent mark-up rate on the loan, he said. He observed that it
was commendable to see a decline in the mark-up rate on agri
loans, which has been reduced from 14 percent to eight
percent, while more cut on mark up in future was expected.
"The insurance scheme, first of its kind in the country, would
benefit 98 percent of farmers, especially the poor ones.
BoP Managing Director Hamesh Khan said that the State Bank of
Pakistan (SBP) had permitted them to open 10 more branches of
which five would be opened in Punjab within a few months. He
said that they were also planning to open their branches in
other provinces in near future, where they would extend
similar agri packages to the farmers. "In consultation with
the tobacco growers, they were planning to open a branch in
Mardan to facilitate tobacco farmers," he added.
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loss too: CM
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