ForumIAS announcing GS Foundation Program for UPSC CSE 2025-26 from 19 April. Click Here for more information.
ForumIAS Answer Writing Focus Group (AWFG) for Mains 2024 commencing from 24th June 2024. The Entrance Test for the program will be held on 28th April 2024 at 9 AM. To know more about the program visit: https://forumias.com/blog/awfg2024
Govt penalizes insurers for delay in settling crop insurance claims
News
- Government has proposed new guidelines for Pradhan Mantri Fasal Bima Yojna (PMFBY) to be implemented from upcoming Rabi season
- Need for renewed guidelines
- Decline in enrollment of farmers under the scheme which is down by 15% from its inception
- Delay in claim settlement to farmers by insurance companies
- Delay by States, in giving their due share of premium
- Guidelines for insurance firm
- Insurance firms to pay farmers 12% penal interest for delayed claim settlement
- Insurance firms can be removed from scheme for non-performance
- Each insurance company will have to mandatorily spend 0.5% of gross premium per person for publicity and awareness of the scheme
- Guidelines for state government
- 12% penalty for state government for delay in paying premium, subsidy share to the firms
- Guidelines for farmers
- Revamped scheme will now cover a wider variety of risks, such as hailstorms, cloudbursts and cases of fire destroying crops
- Farmers will also get more time to inform the government about individual losses—from 48 hours earlier to 72 hours after crop damage.
