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12% interest for firms for delay in crop loss claims: Govt

The state governments will also have to pay the same rate of interest to farmers if they delay the contribution of their share, Union Agriculture Minister Radha Mohan Singh said

By: Express News Service | New Delhi | Published: August 1, 2018 1:07:50 am
12% interest for firms for delay in crop loss claims: Govt Union Agriculture Minister Radha Mohan Singh (File)

Insurance companies that fail to clear claims of farmers for crop loss within two months will have to make the payment with 12 per cent interest, Union Agriculture Minister Radha Mohan Singh said during question hour in the Lok Sabha on Tuesday.

Replying to questions from members, Singh said: “Those insurance companies which fail to clear claims of farmers for crop loss within two months will have to pay with 12 per cent interest.” The state governments will also have to pay the same rate of interest to farmers if they delay the contribution of their share, he added.

Singh said said the Central government had introduced the Pradhan Mantri Fasal Bima Yojana (PMFBY) from Kharif 2016 to address risks associated with agriculture. Farmers will get full insurance cover as there is no capping of the sum.

The minister said the scheme offers insurance cover at all stages of the crop cycle, including post-harvest risks in specified instances. The PMFBY, according to him, addresses all shortcomings of previous schemes, and the premium is very low. His deputy, Gajendra Singh Shekhawat, said 10 crore farmers in the country had taken PMFBY cover and 5 crore of them had availed of insurance benefits so far. ens

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