Modi govt's crop insurance marred by delayed claim settlement, low coverage

Centre bears higher share of premium for states which gives adequate budget for PMFBY, suggests panel

The Narendra Modi-led central government’s ambitious Pradhan Mantri Fasal Bima Yojana (PMFBY), in the first two years of its operations, has been set back by issues like low coverage among non-loanee farmers and delayed or non-payment of claims, a high-powered panel has found.

If the issues with PMFBY are not addressed in time, they could impact the government’s official target of covering 50 per cent of the gross cropped area (GCA) under insurance by 2019, the panel has said.

“Though all complaints, particularly with regards to non-payment, might not be correct, it only demonstrates the need for a robust process