Centre plans to levy 12% interest on late claim settlements under PMFBY

Move to ensure affected farmers get compensation on time

by Nidhi Bhati

The government is considering a proposal to levy 12 per cent interest on claim payments under the Pradhan Mantri Fasal Bima Yojana (PMFBY) that are not settled within two months, according to the agriculture & farmers’ welfare minister Radha Mohan Singh. The move will ensure timely compensation for the affected farmers. The PMFBY guidelines stipulate the settlement of claims within two months of harvest and within 21 days of receipt of yield data by the companies from the state governments. Acknowledging that there has been a 14 per cent drop in the area covered under PMFBY in 2017-18, Singh said that this was mainly due to the ministry’s attempts to bring in some transparency in the scheme by adopting technology. In the early days of PMFBY, as the scheme was heavily subsidised, the area covered in many places was more than what should actually be covered, he added.

References
1. https://www.thehindubusinessline.com/economy/centre-to-crack-down-on-delays-in-crop-insurance-claim-payouts/article24646687.ece
CMIE STATISTICS
Unemployment Rate
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Consumer Sentiments Index
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All listed Companies
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 Net fixed assets 9.2 11.8
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Annual Financials of All Companies
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All Companies
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Non-financial Companies
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 Net profit -9.4 19.9 20.7 6.6
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