Penalty of 12% & Improved Operational Guidelines of PMFBY

Government has taken steps to resolve the issue of delay in payment of claims in Pradhan Mantri Fasal Bima Yojana (PMFBY).

To solve the problem, the timelines have been tightened and penalty provision of 12% interest rate per annum by Insurance Company to farmers for delay in settlement claims beyond 10 days of prescribed cut-off date for payment of claims. 

12% interest rate for delay in release of State share of Subsidy beyond three months of prescribed cut-off date/submission of requisition by Insurance Companies etc. have been prescribed in the revised Operational Guidelines issued recently.   

Pradhan Mantri Fasal Bima Yojana (PMFBY) has been under implementation in the country since Kharif 2016 season. States of Andhra Pradesh and Telangana also come under the government scheme of PMFBY. 

Various Other Measures: 

1.Timelines for settlement of claims
2. Leveraging of technology for assessment of yield by State Government agencies using smartphone/CCE Agri App. 
3. Integration of all individual farmer data on National Crop Insurance Portal etc. has been taken under PMFBY.   

However, due to use of manual process for transmission yield data, late release of their share in premium subsidy by some States like Andhra Pradesh and Telangana, yield related disputes between insurance companies and States, non-receipt of account details of some farmers for transfer of claims etc. settlement of claims in some States has been delayed under the scheme.