Penalties on delay in settlements under Fasal Bima Yojana

New Delhi : The government on Tuesday decided to incorporate penalties for states and insurance companies for delay in settlement of insurance claims under the Pradhan Mantri Fasal Bima Yojana (PMFBY).

Farmers will get 12 per cent interest for delay in settlement claims beyond two months. An official release said the crucial provision was part of the new operational guidelines issued by the government for implementation of PMFBY.

It said the new operational guidelines come at the onset of the rabi season, which starts from October 1.