Farmers Pay Rs 32,440 Cr Premium Under PMFBY; Claims Over Rs 1.64 Lakh Cr Cleared

Insurance claims of 1.64 lakh crore have been paid to farmers against Rs 32,440 crore premium paid under the Pradhan Mantri Fasal Bima Yojana, Agriculture Minister Shivraj Singh Chouhan said on Tuesday in the Lok Sabha. Replying to a question on the scheme during the Question Hour, he said the Modi government has made it farmer-friendly by removing inconsistencies in the previous scheme.

The Pradhan Mantri Fasal Bima Yojana (PMFBY) was introduced in the country in the Kharif 2016 season and is voluntary for the states, he added. Under the scheme, comprehensive risk coverage for crops against all non-preventable natural risks -- from pre-sowing to post-harvest stages of crops -- at a very reasonable premium for the farmers is being provided. "As against the premium of Rs 32,440 crore paid by farmers till date, claims of Rs 1.64 lakh crore have been paid out," the minister said.

Therefore, 5 times more claims have been paid out when compared to the premium paid by the farmers, Chouhan added. Replying to a supplementary question by DMK member Kanimozhi Karunanidhi on the delay in the settlement of claims, the minister said the government has taken several measures on the subject like assessment of damage through remote sensing and not visually. It was found that the delay in insurance claim settlement happens most of the time due to states. It is also the responsibility of states to implement the scheme smoothly, he said, adding that there is a provision of a 12 per cent penalty on insurance firms in case of delays.

(PTI)