In order to ensure the timely payment of claims of insured farmers under the Prime Minister's Crop Insurance Scheme, the time frame has been set by the insurers to settle the claims within two months of the crop in the operational guidelines. But, timely payment of claims to the farmers is possible only if the State government has issued a list of subsidy and yield on time to the insurers. In reply to a question by MP Mahesh Poddar in the Rajya Sabha, the Minister of State for Agriculture and Farmers Welfare Purushottam Rupala gave this information.
Rupala said that the government has changed the operational guidelines of the scheme with effect from October 1, 2018 to ensure transparency and accountability. The insurer company has to make payment of interest at 12 per cent per annum if the delay in payment is more than 10 days from prescribed cutoff date. Also, due to delayed demand of more than three months in the release of State’s share of subsidy after the demand or fixed cutoff date, the State Governments will have to pay interest at the rate of 12% per annum. The District Level Grievance Redressal Committee (DGRC) and the State Level Grievance Redressal Committee (SGRC) have been made to redress the grievances of farmers.
On the current status of payment of crop insurance claims, MP Poddar was informed that the maximum number of payments have been made for Kharif 2016, Rabi 2016- 17 and Kharif 2017. While releasing the data, the Minister said that the approved claim of Kharif 2016 under the Prime Minister's Crop Insurance Scheme was Rs 10,494.68 lakh, against which Rs 10481.80 lakh have been paid and Rs 12.88 lakh is due. The approved claim of Rabi 2016-17 was Rs 5811.31 lakh, against which Rs 5651.01 lakh have been paid and the remaining amount of Rs 160.30 lakh is due.
Similarly, the accepted claims of Kharif 2017 were Rs 17095.99 lakhs against which Rs 16770.14 lakh have been paid and Rs 325.85 lakh is due.
The Minister said that in some states the delay in payment was because of delay in providing crop figures, disputes related to crops between the states and the insurance companies, non-availability of bank account details of farmers etc.