GOI says Crop Insurance Claims of worth Rs. 2,761.10 crore pending

What’s in News?

According to the recent data, a significant backlog of pending crop insurance claims totally approximately Rs.2,716.10 crore was revealed till 2021-22 under the Pradhan Mantri Fasal Bima Yojna (PMFBY). The maximum pendency of crop insurance claims is in Rajasthan, followed by Maharashtra and Gujarat.

Factors behind the delays

The delays in settling these claims have stemmed from various factors, as noted by Agriculture Minister Narendra Singh Tomer. These include the late transmission of yield data, delayed release of the government’s premium subsidy share and disagreements over yield-related matters between insurance companies and states. These hurdles collectively contribute to the extended waiting period for farmers seeking their rightful compensation.

States dealing with pending claims

Out of the pendency of claims, the maximum was in Rajasthan (Rs.1,378.34 crore), followed by Maharashtra (Rs.336.22 crore), Gujarat (Rs.258.87 crore), Karnataka (Rs.132.25 crore) and Jharkhand (Rs.128.24 crore).

Government’s Response

The Agriculture Minister stated that all the major work relating to the assessment of crop yield/ crop loss for calculation of admissible claims are being performed by the concerned state government or joint committee of state government officials and concerned insurance companies.

Certain states have suitably addressed most of the complaints received during the implementation of PMFBY against insurance companies about non-payment and delayed payment of claims.

Steps for fair payment of claims

The government has released the central share of subsidy for the period Kharif 2018 to Rabi 2020-21, by delinking the same with the states’ share of subsidy, ensuring timely settlement of claims to farmers.

Insurance companies have disbursed claims to the tune Rs.209.57 crore on pro-rata basis, benefitting around 4.82 lakh farmers throughout the country, in Jharkhand, with the intervention of the central government, an amount of Rs.764 crore has been disbursed for Kharif 2018 to Rabi 2019-20.

Improved oversight and Integration of Technology

In a bid to enhance transparency and accountability, the government is intensifying its monitoring of insurance companies’ activities. Weekly video conferences are organised to ensure the timely settlement of claims. Moreover, a new “Digiclaim Module” has been introduced, commencing from Kharif 2022, which integrates the National Crop Insurance Portal (NCIP) with the Public Financial Management System (PFMS) and the accounting systems of insurance companies. This comprehensive approach ensures efficient and transparent claim processing.

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Akansha Arora

My role as a content writer specializing in current affairs at Adda247 involves meticulously researching and crafting compelling articles aimed at guiding and informing candidates preparing for National and State Level Competitive Government Exams. With a dedication to educational excellence, I strive to keep our candidates abreast of the latest developments and trends in current affairs. By providing insightful and engaging content, I aim to ensure that aspiring candidates are well-prepared and informed for their examinations.

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