Farmers to Get 12% Interest on Delayed Crop Insurance Claims Under PM Fasal Bima Yojana

Key Highlights:

• Farmers to get 12% interest on delayed claims.
• Satellite tech ensures accurate loss assessments.
• Affordable premiums for Rabi crops like wheat, mustard.
• ₹17,000 crore has been paid to farmers since scheme launched.
• Application deadline extended to January 2025.

The government has announced a major update to the Pradhan Mantri Fasal Bima Yojana (PMFBY). Farmers will now receive 12% interest on delayed crop insurance payments from insurance companies. This step is expected to ensure timely compensation for crop losses and benefit millions of farmers across the country.

Also Read: PM Kisan Samman Nidhi: 19th Installment Expected in February 2025 – Key Details Farmers Must Know

Accurate Crop Loss Assessment Using Satellite Technology

Union Agriculture Minister Shivraj Singh Chouhan, in a recent virtual meeting with state agriculture ministers, stated that crop loss assessments will now be conducted using remote sensing and satellite technology. This modern approach will provide accurate evaluations, replacing the earlier manual crop-cutting methods.

Direct Benefit Transfer for Insurance Claims

The amount of crop insurance claims will be directly transferred to farmers accounts through the Direct Benefit Transfer (DBT) system. If an insurance company delays payment, they will have to pay 12% interest on the claim amount. This new rule aims to improve accountability and benefit farmers by reducing payment delays.

Four Crore Farmers Benefited So Far

PMFBY, launched to provide affordable crop insurance, has become the world's largest crop insurance scheme, according to the Agriculture Minister. 

Key highlights of the scheme include:

• 14 crore applications received (876 lakh loanee and 552 lakh non-loanee applications).
• Coverage of 602 lakh hectares of farmland.
• A gross insured amount of ₹2.73 lakh crore.
• ₹17,000 crore paid to farmers in insurance claims since its launch.

Also Read: Madhya Pradesh Farmers Benefit from Rs 6 Crore Subsidy for Irrigation Equipment Under PM Agriculture Irrigation Scheme

Extended Deadline for Rabi Crop Insurance

Farmers can insure their Rabi crops under PMFBY until January 10, 2025. In Uttar Pradesh, the deadline is extended to January 15, 2025. Crops like wheat, mustard, gram, linseed, and lentils are covered under this scheme. Farmers can claim compensation for up to 80% crop loss.

Affordable Premium for Farmers

The insurance premium under PMFBY is kept low to make it accessible. For example:

• Mustard crop: Insurance amount of ₹31,460 per hectare, premium ₹417.9 (1.5%).
• Irrigated wheat crop: Insurance amount of ₹37,290 per hectare, premium ₹559.35 (1.5%).
• Unirrigated wheat crop: Insurance amount of ₹25,000 per hectare, premium ₹375 (1.5%).
• Gram crop: Insurance amount of ₹34,000 per hectare, premium ₹510 (1.5%).

How to Apply for PMFBY

Farmers can insure their crops under PMFBY through the following steps:

1. Online Application: Visit the official website https://pmfby.gov.in.
2. Helpline Support: Call the Krishi Rakshak Portal helpline number 14447 for assistance.
3. CSC Centers: Visit Common Service Centers for help with the application.
4. Bank Branches: Collect the PMFBY form from your nearest bank, fill it out, and submit it.
5. Required Documents: Farmers will need their Aadhaar card, bank passbook, and farm documents while applying.

Government's Commitment to Farmers

The central government has assured farmers that it will release its share of the insurance amount immediately. States have been urged to expedite their payments to ensure quick disbursal. These updates aim to strengthen farmers trust in the scheme and provide timely support during losses caused by natural disasters.

Also Read: 10 Lakh Houses Will be Approved Under PM Awas Yojana, Rs 54,500 Crore Budget Allocated

CMV360 says

The updated Pradhan Mantri Fasal Bima Yojana ensures accurate crop loss assessment, timely compensation, and accountability from insurance companies with a 12% interest on delays. By offering affordable premiums and easy application processes, the government is committed to protecting farmers livelihoods and strengthening the agricultural sector against natural disasters.