PM crop insurance: Rs. 2,822-crore claims pending
From 2016-17 till date, many farmers, across States, who opted for the Pradhan Mantri Fasal Bima Yojana (PMFBY) have not received insurance claims. The outstanding amount of about Rs. 2,822.1 crore is thanks to the State governments not contributing their share to the scheme.
According to the Ministry of Agriculture and Farmers Welfare, the admissible claims under PMFBY are generally paid by the concerned insurance companies within two months of completion of Crop Cutting Experiments (CCEs)/harvesting period and one month of notification for invoking the risks/perils of prevented sowing, mid-season adversity and post-harvest losses. But this is subject to receipt of the total share of premium subsidy from the concerned government within time.
The Ministry data presented to the Lok Sabha in December shows that insurance companies have outstanding claims of Rs. 3, 381.1 crore for the period between 2016-17 and 2020-21. Of this, Rs. 2,822.1 crore is pending as the State governments have not paid the subsidy.
The PMFBY was introduced from kharif 2016 season. It is a voluntary scheme for States as well as farmers. States can participate in the scheme keeping in view their risk perception and financial considerations. Since the inception of the scheme, 27 States/Union Territories have implemented the PMFBY in one or more seasons.
From the inception of the scheme till 2020-21, cumulatively 2,938.7 lakh farmers, with a sum insured of Rs. 10,49,342 crore, have been enrolled under the scheme.
The premium under the scheme is determined through biding. However, farmers have to pay a maximum 2 per cent for kharif, 1.5 per cent for rabi food and oilseed crops and 5 per cent for commercial/horticultural crops. The balance of actuarial/bidded premium is shared by the union and States on 50: 50 basis ( except the North Eastern States). The premium rate of crops depends on the risk associated with them and the total liability of the State depends on the actuarial/bidded premium rate, sum insured of crops, area insured, and the number of crops notified by the States.
“Some States have not released their share of premium subsidies for certain seasons, and any specific reasons for such default have not been communicated,” the Ministry told the Lok Sabha in November last year.
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