If insurance company makes late payment, penalty of 12 percent will be imposed: Shivraj Chouhan
Farmers' Welfare and Rural Development, Shivraj Singh Chouhan, announced that under Pradhan Mantri Fasal Bima Yojana (PMFBY), a penalty of 12 per cent will be imposed on insurance companies if the claimed payment gets delayed, which will be directly deposited into the farmers' accounts.
According to a press release by the Ministry of Agriculture and Farmers Welfare, he identified state government delays in releasing premium amounts as the primary cause of payment delays and urged prompt action. The central government will release its share immediately to prevent further delays, with payments being made directly to farmers' accounts from the Kharif season onward.
Chouhan attributed the bulk of payment delays to issues such as delayed release of premium amounts by state governments and disputes between insurers and state authorities.
Chouhan, addressed questions about the Crop Insurance Scheme in the Lok Sabha today, highlighting the challenges of previous insurance programs. He noted that earlier schemes faced issues such as inadequate claims, low insured amounts, and delays in settlement, leading to widespread dissatisfaction among farmers and farmer organizations.
Chouhan expressed pride in the introduction of PMFBY by Prime Minister Narendra Modi. Under previous schemes, there were 3.51 crore applications for crop insurance, which has now increased to 8.69 crore. The total insured amount has risen to over Rs 2.71 lakh crore, with farmers paying a premium of Rs 32,404 crore and receiving claims worth Rs 1.64
