Supreme Court: Borrowers Retain Redemption Rights if Balance is Paid After Auction Deadline  ||  Supreme Court: Non-Confirmation of Seizure under Section 37A Impacts Adjudication Proceedings  ||  SC: Blacklisting After Contract Termination is Not Automatic and Needs Independent Review  ||  Grand Venice Fraud Case: Supreme Court Cancels Bail of Satinder Singh Bhasin  ||  SC: Senior Employee Cannot Claim Same Lesser Penalty As Subordinate; Bank Manager's Dismissal Upheld  ||  Madras HC: Governor Must Follow Cabinet's Advice on Remission Decisions, Regardless of Personal View  ||  Kerala High Court: Entrepreneurs Must Be Protected From Baseless Protests to Boost Industrial Growth  ||  J&K&L High Court: Second FIR Valid if it Reveals a Broader Conspiracy; 'Test of Sameness' is Key  ||  Supreme Court: Expecting a Minor to Respond to a Public Court Notice is ‘Perverse’  ||  SC: Order 23 Rule 1 CPC Applies to S. 11 Arbitration Act, Barring Fresh Arbiration After Abandonment    

Government modifies operational guidelines for Pradhan Mantri Fasal Bima Yojna (PMFBY), Performance evaluation of insurance companies has been made stringent- (Press Information Bureau) (18 Sep 2018)

MANU/PIBU/1340/2018

Civil

The Government has decided to incorporate the provision of penalties for States and Insurance Companies for the delay in settlement of insurance claims under the Pradhan Mantri Fasal Bima Yojana (PMFBY). This crucial provision is part of the new operational guidelines issued by the Govt. for the implementation of PMFBY. 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 release of State share of subsidy beyond three months of prescribed cut-off date submission of requisition by insurance companies. The new operational guidelines come at the onset of the rabi season, which starts from 1st of October.

The new operational guidelines also detail a Standard Operating Procedure for evaluation of insurance companies and remove them from the scheme if found ineffective in providing services. The Government has also decided to include perennial horticultural crops under the ambit of PMFBY on a pilot basis. The scheme, as per the new operational guidelines provides add on coverage for crop loss due to attack of wild animals, which will be implemented on a pilot basis. Aadhaar number will be mandatorily captured to avoid duplication of beneficiaries.

In order to ensure that more non-loanee farmers are insured under the scheme, apart from various awareness activities being scheduled, the insurance companies are given a target of enrolling 10% more non-loanee farmers than the previous corresponding season. The insurance companies will have to mandatorily spend 0.5% of gross premium per company per season for publicity and awareness of the scheme.

The new operational guidelines address the current challenges faced while implementing the scheme by putting forth effective solutions. The much demanded rationalization of premium release process has been incorporated in the new guidelines. As per this, the insurance companies need not provide any projections for the advance subsidy. Release of upfront premium subsidy will be made at the beginning of the season based on 50% of 80% of total share of subsidy of corresponding season of previous year as GOI/State subsidy. Balance premium will be paid as a second installment based on the specific approved business statistics on the portal for settlement of claims. Final installment will be paid after reconciliation of entire coverage data on portal based on final business statistics. This will reduce the delay in settling the claims of farmers.

Tags : GUIDELINES   PMFBY   MODIFICATION  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved