All the major work like selection of insurance model, selection of Insurance Companies through transparent bidding process, enrollment of farmers, assessment of crop yield/crop loss for calculation of admissible claims are being performed by the concerned State Government or Joint Committee of State Government officials and concerned insurance company.   Further, all the data relating to payment of claims was available with the States/UTs, therefore, they were advised to impose penalties on insurance companies themselves.  The roles and responsibilities of each stakeholder are defined in the Operational Guidelines of the scheme for the proper execution of the scheme. 

Majority of the claims are settled  within the stipulated timelines under the Operational Guidelines of the scheme by the insurance companies.  However, during the implementation of PMFBY, some complaints were received in the past about non-payment, delayed payment or under payment of claims on account of incorrect/delayed submission of insurance proposals by banks; discrepancy in yield data & consequent disputes between State Government and insurance companies,  delay in providing State Government share of funds, non-deployment of sufficient personnel by insurance companies etc.,  which were suitably addressed as per provisions of the scheme.

In order to rigorously monitor claim disbursal process, a dedicated module namely ‘Digiclaim Module’ has been operationalized for payment of claims from Kharif 2022 onwards. This modules gives GOI visibility of claims payable, claims paid and pending. This is used for monitoring of claims, which was not possible earlier.  It involves integration of National Crop Insurance Portal (NCIP) with Public Finance Management System (PFMS) and accounting system of Insurance Companies to provide timely & transparent processing of all claims.  W.e.f. Kharif 2024, in case payment is not made timely by Insurance Company, penalty of 12% is auto-calculated and levied through NCIP.   This is the first season for implementation of auto calculated penalty on NCIP and Department is taking all necessary steps for its enforcement.

This information was given by Minister of State for Agriculture and Farmers Welfare, Shri Ramnath Thakur in a written reply in Lok Sabha today.

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 MG/KSR

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