Government’s crop insurance scheme to cover crop loss in wild animal attacks

The Union Government has decided to cover damages done to crops in case of wild animal attacks under the Pradhan Mantri Fasal Bima Yojna in select districts on an experimental basis. The information was shared by Union Agricultural Minister Radha Mohan Singh. The government also brought certain horticultural crops under the ambit of Fasal Bima Yojna ambit on an experimental basis.

download our android app

 

Key Highlights

  • The Government’s Fasal Bima Yojna did not previously cover damages incurred to an individual or a limited number of cultivators during unprecedented localised events such as waterlogging, landslide and hailstorms.
  • The provisions of the crop insurance scheme were amended in consultation with various stakeholders and the amendments have been implemented from this month.
  • The amended provisions also stipulate penalties in cases of delay in clearing the insurance claims for crop damages.

Provision of Penalties

  • 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).
  • The new provisions, the farmers will be paid 12 percent interest by insurance companies for the delay in settlement claims beyond two months of prescribed cut-off date.
  • The state governments will be required to pay 12 per cent interest for the delay in the release of the state share of subsidy beyond three months of prescribed cut-off date submission of requisition by insurance companies.
  •  The new guidelines also detail a Standard Operating Procedure for evaluation of insurance companies and remove them from the scheme if found ineffective in providing services.

About Pradhan Mantri Fasal Bima Yojna

  • It is farmers’ welfare scheme launched in 2016 to ensure faster insurance services or reliefs to farmers.
  • It aims to reduce the premium burden on farmers and ensure the early settlement of crop assurance claim for the full insured sum
  • It had replaced earlier two schemes National Agricultural Insurance Scheme (MNAIS) and Modified National Agricultural Insurance Scheme (MNAIS) by incorporating their best features and removing their inherent drawbacks (shortcomings)

    download our android app