Chouhan said the government had introduced a crucial change mandating that insurers must pay farmers’ claims within the stipulated time frame or face financial penalties. Under the revised provision, companies delaying settlements will now be required to pay interest at 12 percent. The measure, he noted, is intended to deter procedural delays and reinforce the scheme’s core objective of timely support to cultivators facing crop losses.
According to Chouhan, the decision follows repeated complaints from farmers about protracted claim processing, particularly during severe weather cycles that have become increasingly unpredictable. By imposing a financial cost on delays, the government aims to strengthen operational discipline among participating insurers and ensure that farmers receive relief when they need it most.
The update marks one of the most significant policy interventions under PMFBY in recent years, reflecting New Delhi’s broader push to streamline agricultural safety nets. As the kharif and rabi seasons expose farmers to fluctuating climatic risks, officials believe the new penalty clause will reinforce trust in the crop insurance framework and enhance accountability across the system.
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