Irda looks to reduce time taken for settlement of crop insurance

Feedback received by Irda is that a loss in kharif season is often not compensated by rabi or even by next kharif season

The Insurance Regulatory and Development Authority (Irda) will work towards reducing the time taken for assessment of loss and settlement of claims of agricultural crop insurance.

While huge claims are being paid under this segment, the big issue is that ti takes considerable time, said M Ramaprasad, Member (Non Life), Insurance Regulatory and Development Authority (Irda).

The feedback received by Irda is that a loss in kharif season is often not compensated by the rabi or even by the next kharif season. The settlement takes time due to assessment of crop loss.

Irda is now planning to rely more on technology in the assessment of loss, for which it will take help from the India Meteorological Department (IMD). This will ensure that the indemnity will reach farmers early and bring down the turnaround time, Ramaprasad said.

Irda is also asking insurance companies to look at the Common Service Centres which have been set up the government across all districts, as a distribution channel. This will bring down the cost of servicing and delivering of policies, he added.