Indian insurers to shoulder interest payments of delayed rural claims

Companies failing to clear crop loss claims within 2 months have to pay with 12% interest.

The government announced that Indian insurance companies that fail to clear farmers’ claims for crop loss within a period of two months have to pay it with 12% interest, reports The Times of India.

“Even the state governments will have to pay interest to farmers if they delay their shares,” Union agriculture minister Radha Mohan Singh in Lok Sabha told local media.

Over 27 states and union territories are enrolled in the Pradhan Mantri Fasal Bima Yojana (PMFBY) scheme.

Launched in 2016, PMFBY is an actuarial premium based scheme requiring farmers to pay a maximum premium of 2% for Kahrif, 1.5% for Rabi food and oilseed crops and 5% for annual commercial crops. The remaining part of the premium is shared by the Centre and the state government.

Although the number of farmers insured under the PMFBY scheme has reportedly increased, the delay in settling their claim remains a major cause of concern.

Also Read

FWD Philippines targets gamer insurance gaps

Korean construction insurer maintains strong capital

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit