Agriculture Minister Orders Probe into Abysmally Low Farmer Crop Insurance Claims

Union Agriculture Minister Shivraj Singh Chouhan has taken strong action against instances of extremely low claim payouts under the Pradhan Mantri Fasal Bima Yojana, where farmers reportedly received amounts as low as ₹1, ₹3, ₹5, and ₹21. Chouhan stated that such payments are unacceptable and constitute a 'mockery' of farmers' interests. He convened a high-level meeting and launched a thorough investigation into these complaints.

Strict instructions have been issued to insurance companies and government officials to expedite and ensure the accuracy of claim settlements. The minister emphasized the need for an accurate damage assessment system, including a scientific review of remote sensing-based assessments, and directed a revision of guidelines that permit very low insurance coverage amounts. He also stressed the importance of insurance company representatives being present during damage surveys to prevent irregularities.

Furthermore, Chouhan urged better coordination with state governments to ensure their timely contribution to farmer subsidies. He highlighted that states delaying payments could be charged 12 percent interest, questioning why the central government faces criticism for states' negligence.

Impact: This news directly impacts the agricultural insurance sector in India. Insurance companies involved in the Pradhan Mantri Fasal Bima Yojana may face increased scrutiny and pressure to improve their claim settlement processes, potentially affecting their operational costs and profitability. Farmers are expected to benefit from more timely and accurate compensation, which could boost confidence in agricultural insurance schemes. Government intervention highlights a focus on farmer welfare, possibly leading to regulatory changes or scheme amendments. Rating: 6/10

Difficult terms: Pradhan Mantri Fasal Bima Yojana: A crop insurance scheme in India aimed at providing financial support to farmers suffering crop losses due to natural calamities, pests, and diseases. Remote sensing: The acquisition of information about an object or phenomenon by using devices that are not in physical contact with the object or phenomenon, often used for monitoring crop health and damage over large areas. Claim settlements: The process by which an insurance company pays out money to a policyholder after a covered event occurs.