Farmers have received some positive news! Until now, loss assessments during crop cutting were done through on-site inspections. However, the central government has decided to shift to a satellite-based system for evaluating damages. Under the crop insurance scheme, claims amounting to over ₹1.7 lakh crore have already been settled.
To accurately assess the loss of crops due to floods, droughts, or other natural disasters, the government will now use remote sensing technology. This approach eliminates the need for physical site visits to gather information about the crops. The Prime Minister’s Crop Insurance Scheme was launched in 2016 to compensate farmers for their crop losses. So far, more than ₹1.7 lakh crore in claims have been paid out. This insurance scheme is jointly managed by the central and state governments. Some states have been slow in providing their share of premium subsidies and have faced issues in submitting crop details. Additionally, there have been disagreements between insurance companies and states, delays in transferring compensation amounts to eligible farmers’ accounts, and inaccuracies in the data entered on the national crop insurance portal.
The central government has taken notice of these issues and separated its premium from the states to ensure timely release of insurance amounts. They have also tightened regulations on insurance companies. Now, state governments are required to make compensation payments within 30 days of receiving the final crop loss report. If they fail to do so, the companies will be obligated to pay interest at a rate of 12% per annum on the delayed amount. Farmers’ premium contributions are capped at 2% for Kharif crops, 1.5% for Rabi crops, and up to 5% for commercial and horticultural crops. Additionally, the central government has introduced a DigiClaim platform for Kharif 2023 that facilitates direct payment to farmers through the national crop insurance portal to enhance transparency in claims processing. There is also an Agriculture Protector portal and a dedicated toll-free helpline (14447) for addressing complaints.
