The Centre wants to ensure timely settlement of claims under crop insurance scheme Pradhan Mantri Fasal Bima Yojana (PMFBY) and has proposed some amount should be deposited by States as well as insurers before the enrolment begins but the initiative is being opposed by both stakeholders. The issue may be discussed in a meeting next week so that guidelines are amended before next kharif season.
“While one of the pleas made by insurance companies for the late payment of claims to farmers is, delay by States to deposit their share of premium subsidy, it is not always that States are at fault. Even insurers also make delayed payment to farmers and plead that they do not get the claims from the re-insurers,” said an official.
All stakeholders need to understand the necessity of timely claims settlement and payment to farmers, the official added.
One of the proposals says: “State/UT will make necessary budgetary provision for premium subsidy based on fair estimates, at the beginning of the crop season to ensure timely premium payment to insurance companies to enable faster claim settlement.”
