Farmers have received insurance claims of 1.64 trillion against a premium of Rs 32,440 crore paid under the Pradhan Mantri Fasal Bima Yojana, Agriculture Minister Shivraj Singh Chouhan said in the Lok Sabha on Tuesday. Responding to a query about the initiative during query Hour, he stated that the Modi government has made it more farmer-friendly by eliminating discrepancies from the previous system.
The Pradhan Mantri Fasal Bima Yojana (PMFBY) was implemented in the country during the Kharif 2016 season and is voluntary for states, he explained. Comprehensive risk coverage for crops against all non-preventable natural risks is offered under the program, from the pre-sowing to the post-harvest phases of crops, at a relatively affordable cost for the farmers.
"As against the premium of Rs 32,440 crore paid by farmers till date, claims of Rs 1.64 trillion have been paid out," stated the minister.
Accordingly, five times as many claims have been fulfilled as the farmers' premium, according to Chouhan. In response to a follow-up question on the claim settlement delay from DMK member Kanimozhi Karunanidhi, the minister stated that the government has implemented several methods, such as using remote sensing to estimate damage rather than eye inspection.
It was shown that states are mostly to blame for the delays in insurance claim payout. According to him, governments bear the obligation of ensuring a seamless implementation of the system. He also mentioned that insurance businesses may face a penalty of 12% in case of delays.
