Farmers suicides are an unfortunate fact in India and are higher in Madhya Pradesh, Telangana & Maharashtra. Reasons are almost always financial. This initiative is from Telangana state government in collaboration with LIC of India to provide life cover to farmers aged between 19-59. Suicide coverage isn’t clear but nonetheless will send a wrong message to farmers to whom 5 Lakhs can be a huge sum. Insurance companies do not cover suicides on life policies. It’s a Moral Hazard.
Why were only farmers chosen for this coverage? Why aren’t other professions covered? Even their families would be devastated financially in case of death of a family member/ bread winner. What’s this interfere in Insurance business and how is it warranted? At 5 lakhs ex-gratia per suicide for 1000 people will cost 50 Crores per year. Rythu bheema is estimated to cost 1000 crores per year.
The entire video is added below.