‘Settle insurance claims by July 15’

APC warns defaulting companies that undue delay in settlement of claims will not be accepted

Published: 09th July 2018 02:09 AM  |   Last Updated: 09th July 2018 05:36 AM   |  A+A-

By Express News Service

BHUBANESWAR:The State Government has expressed displeasure over delay in settlement of claims of farmers under Pradhan Mantri Fasal Bima Yojana (PMFBY) by different insurance companies for kharif 2017 and asked them to settle all claims by July 15.

At a recent review meeting, Agriculture Production Commissioner Gagan Kumar Dhal warned the defaulting companies that undue delay in settlement of claims will not be accepted under any circumstances.

Sources said the performance of insurance companies empanelled for the scheme is very poor as claim amount to the tune of Rs 384.46 crore has been settled against the total estimate of Rs 1,719.38 crore. The claim disbursement is less than 30 per cent in 14 districts.

While Tata AIG has settled 15 per cent of the total claim of Rs 427.78 crore, Chola MS has settled only 14 per cent of Rs 306.68 crore. The AIC has, however, made substantial settlement with 57 per cent of the total claim of Rs 156.83 crore and the NIC has settled 23 per cent of Rs 828.09 crore. Though Rs 384.46 crore has been released by the insurance companies, the money has not reached the farmers’ accounts as their settlement details have not been furnished to the banks.

Dhal directed the insurance companies to expedite the process and release money by July 15 without further delay, excepting the cases in which the claim forms have not been received from the beneficiaries. The insurance companies have also been instructed to furnish panchayat-wise details of farmers to the banks to enable them to credit the amount to their respective accounts.

On the other hand, Cooperation department Secretary Ranjana Chopra has asked the implementing agencies that the claim adjustment made by them should not exceed 5  to 7 per cent of the estimated claim.
Meanwhile, it has been proposed to open an escrow account with the Odisha State Cooperative Bank (OSCB) for insurance companies to park their funds along with farmers’ details for settlement of claims.

Once the funds are deposited, the OSCB will credit claim amounts to the farmers’ accounts within 24 hours. The bank will have a designated officer to look after the transactions. The Cooperation Secretary has been advised to develop the modalities in this regard.

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