Updated By: LatestGKGS Desk
Pradhan Mantri Fasal Bima Yojana (PMFBY) New Guidelines 2018 for Crop Insurance
If an insurance company delays the payment of a farmer's claim under the Prime Minister's Crop Insurance Scheme, then the insurance company will also have to pay 12% interest on the compensation.
The State Governments will pay 12% interest due to delays in issuing state share in subsidy after three months of the deadline for submission of their demand on behalf of insurance companies.
The settlement of claims of farmers under the Prime Minister's Crop Insurance Scheme (PMFBY) will be settled within two months.
According to the new operational guidelines, due to the attack of wild animals, due to crop damage, insurance cover has also been added to this scheme. It will be implemented on an experimental basis.
To avoid the situation of the beneficiaries again, the 'Aadhaar' number will be entered in it mandatory.
In addition to conducting various awareness programs for the purpose of ensuring more and more non-debt free farmers insurance under this scheme, insurance companies are also given the target of nominating 10% more non-borrowed farmers than the previous season.
Insurance companies must spend 0.5% of the gross premium per company per season essentially to spread the plan and raise awareness about it.
Due to the introduction of several effective solutions under the new operational guidelines, the challenges in the implementation of this scheme have been overcome.
It is not necessary for insurance companies to express any estimates for an advance subsidy. The one-time premium subsidy will be released at the beginning of the season, which will be based on 50% to 80% of the total share in the subsidy of last year as a subsidy of Government of India / State.
The final instalment will be paid after matching all the coverage data available on the portal based on the last trading figures. This will delay the settlement of the claims of farmers, less delay than the earlier.
