INSURANCE
Insurance firms to repay with 12% interest for delay in clearing claims of farmers
Aug-02-2018

Union Agriculture Minister Radha Mohan Singh has stated that Insurance companies, which fail to clear claims of farmers for crop loss within two months will have to repay with 12% interest, under the Pradhan Mantri Fasal Bima Yojana (PMFBY) scheme.

Union Agriculture Minister in the Lok Sabha has said that the central government has introduced the PMFBY scheme from Kharif 2016 to address risks associated with agriculture. The farmers will get full insurance cover as there is no capping of the sum insured and consequently the claim amount is not curtailed or reduced. The PMFBY scheme provides insurance cover at all stages of the crop cycle including post harvest risks in specified instances. The PMFBY addresses all shortcomings in the earlier schemes and is available to farmers at a very low rate of premium, Union Agriculture Minister added.

Minister of State for Agriculture Gajendra Singh Shekhawat said 10 crore farmers in the country have taken the cover of the PMFBY and five crore of them availed insurance benefits so far.

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