With a view to ensure better transparency, accountability and timely payment of claims to the farmers, Government has comprehensively revised the Operational Guidelines of the scheme which have become effective from Rabi 2018-19, said the Minister of State for Ministry of Agriculture & Farmers Welfare Shri Parshottam Rupala in Lok Sabha on Tuesday.
The Revised Operational Guidelines, inter-alia, envisage activities-wise seasonality discipline including timeliness for release of subsidy by Government to insurance companies and settlement of claims eligible farmers by concerned insurance companies. The following provisions, have also been made in the revised Operational Guidelines:
Provision of 12% interest rate per annum to be paid by the Insurance Company to farmers for delay in settlement claims beyond 10 days of prescribed cut off date for payment of claims.
State Government have to pay 12% interest rate for delay in release of State share of Subsidy beyond three months of prescribed cut off date/submission of requisition by Insurance Companies.