Relief to farmers! 12% interest if claims delayed for two months under Modi’s crop insurance scheme

By: | Published: August 1, 2018 1:09 PM

Pradhan Mantri Fasal Bima Yojana: In a major move, the government has said that the insurance companies which fail to clear crop insurance claims within two months will have to repay farmers with 12% interest.

PMFBY: The government’s recent changes to the scheme may help the farmers with crop loss to receive their insurance claims on time.

Pradhan Mantri Fasal Bima Yojana: While delay in settling farmers’ insurance claims has remained a major concern under the Pradhan Mantri Fasal Bima Yojana (PMFBY), the government’s recent changes to the scheme may help the farmers with crop loss to receive their insurance claims on time. In a major move, the government has said that the insurance companies which fail to clear crop insurance claims within two months will have to repay farmers with 12% interest.

The change in the Pradhan Mantri Fasal Bima Yojana (PMFBY) was announced by Union Agriculture Minister Radha Mohan Singh during question hour in the Lok Sabha on Tuesday. “Those insurance companies which fail to clear claims of farmers for crop loss within two months, will have to repay with 12 per cent interest,” Singh said during the Question Hour. The minister added that the state governments will also have to pay the same rate of interest to farmers if they delay the contribution of their share.

The PMFBY was launched from the Kharif season of 2016. Singh said in the Lok Sabha that the insurance scheme for Indian farmers was introduced by the central government to address all risks associated with agriculture. Under the scheme, there is no capping of the sum and the farmers will get full insurance cover. He said that the scheme provides insurance cover at all stages of the crop cycle including post-harvest risks in specified instances.

The minister said that the PMFBY addresses all shortcomings in the earlier schemes and is available to farmers at a very low rate of premium. While 10 crore farmers in the country have taken the cover of the PMFBY, around five crore of them availed insurance benefits so far, informed Minister of State for Agriculture Gajendra Singh Shekhawat. 

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