RGI Ensures Timely Crop Insurance Payouts with Great Service

Published By: The Times Of India ​

Published Date: 27-05-2018

Maharashtra's farmers faced significant challenges with delayed crop insurance claim disbursals under the Pradhan Mantri Fasal Bima Yojana (PMFBY) in 2017. Despite claims worth Rs 2,269 crore being due for the kharif season, only Rs 165 crore (7.2%) had been paid to farmers by May 10, 2018, well after the typical March payout timeline.

The delays affected approximately 45 lakh farmers who were estimated beneficiaries, with only 3.5 lakh (8%) receiving payouts by the reporting date. This situation created growing unrest among farming communities, with some organising protests demanding payments, particularly in Marathwada's Parbhani district. Most insurance companies attributed the delays to technical issues stemming from the government's decision to digitise the scheme. The transition required banks to upload insurance data to the National Crop Insurance portal, with payments made directly to farmers' accounts after data verification - a significant change from the previous offline process.

Many technical hurdles emerged, including incomplete data uploads, errors in bank account details and challenges in accessing premiums from government sources. The public sector Agriculture Insurance Company had the lowest payout rate, disbursing only Rs 9 lakh to 40 farmers despite owing Rs 1,014 crore to 18.7 lakh farmers.

In contrast, Reliance General Insurance (RGI) distinguished itself through timely payouts. As noted by Rakesh Jain, ED & CEO of RGI, ""We have been making payouts in time and in accordance with the scheme,"" establishing the company as a reliable partner for farmers during this difficult period.