Insta
After Enrolment Falls, Agriculture Ministry Calls For A Penalty On Those Delaying Crop Insurance Settlement
Swarajya Staff
Sep 03, 2018, 05:02 PM | Updated 05:02 PM IST
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
The agriculture ministry has proposed penalties for those delaying crop insurance payments and incentives for those companies which pay early, The Hindu Business line has reported.
Under the Pradhan Mantri Fasal Bima Yojana (PMFBY), the state government is supposed to provide yield data to insurance companies. Once companies receive yield data, they are supposed to assess damages and settle claims within three weeks.
“We want to encourage crop insurance companies and State governments that have to provide yield data, based on which crop assessments are done, to come forward to expedite the payments due to farmers. As per our proposal, whoever is causing the delay [in settling the claims] will be asked to pay the affected farmers the claim amount, together with a 12 per cent interest for the delayed period,” Union Agriculture Minister Radha Mohan Singh told The Hindu Business Line.
Delays have been noticed in settling claims. In an answer in Rajya Sabha, the government said that claims worth Rs 11,899 crores were settled though Rs 13,768 crore claims had been approved during Kharif season of 2017. The delay in settlement of dues had led to a 17 per cent drop in enrolment of farmers for the scheme in 2017-18.
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.