Lok Sabha Question No. 4537 (UNSTARRED), answered on 2019-01-08
Subject: Non-Settlement of Claims under PMFBY
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: JITENDRA CHAUDHURY

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK  SABHA UNSTARRED QUESTION NO.4537

TO BE ANSWERED ON THE  8 th  JANUARY, 2019

## NON-SETTLEMENT OF CLAIMS UNDER PMFBY

4537.  SHRI JITENDRA CHAUDHURY:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) whether it is a fact that the private insurance companies are not settling claims put  forth  by  several  farmers  under  the  Pradhan  Mantri  Fasal  Bima  Yojana  (PMFBY) even after collecting huge premiums;
- (b) if so, the details thereof and the reasons therefor;
- (c) whether  Government  has  any  strategy  for  early  and  time-bound  settlement  of claims under PMFBY; and
- (d) if so, the details thereof?

## ANSWER

MINISTER OF  STATE IN THE  MINISTRY OF  AGRICULTURE AND  FARMERS  WELFARE कृ ष एवं कसान कयाण मंालय म राय मंी ( SHRI PARSHOTTAM RUPALA)

- (a)  to (d): Admissible claims under Pradhan Mantri Fasal Bima Yojana (PMFBY) are generally  paid  by  the  insurance  companies  within  two  months  of  completion  of  Crop Cutting Experiments/harvesting period subject to availability of yield data and total State share  of  premium  subsidy  from  concerned  State  Government  within  time.  However, payment  of  claims  in  some  States/areas  get  delayed  due  to  reasons  like  delayed transmission  to  yield  data,  dispute  raised  by  Insurance  Companies  on  yield  data, reconciliation of individual farmer data on portal by bank branches, late release of their share in premium subsidy by some States and NEFT related issues, etc.

The detailed activity-wise seasonality discipline, including timelines for settlement of claims by insurance companies within two months of crop harvest, subject to timely release of subsidy and yield data to the insurance companies, has been prescribed in Operational Guidelines of Pradhan Mantri Fasal BimaYojana (PMFBY) to ensure timely payment of claims to insured farmers.

With a view to ensure better transparency, accountability and timely payment of claims  to  the  farmers,  Government  has  comprehensively  revised  the  Operational Guidelines  of  the  scheme  which  have  become  effective  from  Rabi  2018-19.  The Revised Operational Guidelines, inter-alia, envisage activities-wise seasonality discipline  including  timeliness  for  release  of  subsidy  by  Government  to  insurance companies and settlement of claims eligible farmers by concerned insurance companies. The following provisions, have also been made in the revised Operational Guidelines:

- (i) Provision  of  12%  interest  rate  per  annum  to  be  paid  by  the  Insurance Company  to  farmers  for  delay  in  settlement  claims  beyond  10  days  of prescribed cut off date for payment of claims.
- (ii)    State  Government  have  to  pay  12%  interest  rate  for  delay  in  release  of  State share of  Subsidy beyond three months of prescribed cut off date/submission of requisition by Insurance Companies.

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