The government has incorporated provision of penalties for States and Insurance Companies for the delay in settlement of insurance claims under the Pradhan Mantri Fasal Bima Yojana (PMFBY). According to the new guidelines, the farmers will be paid 12% interest by insurance companies for the delay in settlement claims beyond two months of prescribed cut-off date.
State Governments will have to pay 12% interest for the delay in the release of the State share of subsidy beyond three months of prescribed cut-off date submission of requisition by insurance companies. The Government has also decided to include perennial horticultural crops under the ambit of PMFBY on a pilot basis.
Highlights of the Pradhan Mantri Fasal Bima Yojana:
1. There will be a uniform premium of only 2% to be paid by farmers for all Kharif crops and 1.5% for all Rabi crops. In case of annual commercial and horticultural crops, the premium to be paid by farmers will be only 5%.
2. There is no upper limit on Government subsidy. Even if balance premium is 90%, it will be borne by the Government.
Source- AIR World Service