Telangana to rejoin PM Fasal Bima Yojana

HYDERABAD: After a gap of four years, the Telangana govt will be part of the Pradhan Mantri Fasal Bima Yojana again. The state govt has taken an in-principle decision to be part of the scheme, which the previous govt opted out of. Gujarat was another state that opted out of the Pradhan Mantri Fasal Bima Yojana.

The state govt is looking at drawing up a mechanism where compensation claims are settled soon. After the Congress govt took over in December 2023, chief minister A Revanth Reddy announced plans to implement crop insurance. There was a proposal to implement the scheme with only the state govt completely taking care of it.

"After several discussions, it was decided that the state govt will implement the scheme in partnership with the Centre, where both the Centre and the state will pay the premium." The Centre has given three options to implement the scheme and choose an insurance model. "However, the state govt is also looking at fixing the responsibility on insurance companies to ensure that all the compensation claims are settled. There were some cases where genuine claims did not get compensation," said sources.

Research done by the Centre found that only 42% of claims in the country were disbursed within 3-6 months, 23% were disbursed within 2-3 months, and 21% required more than 6 months to be settled. Many states settle significant lawsuits within 3-6 months. It was suggested that to ensure effective programme execution, the time lag for claim payment must be reduced.

Hyderabad: After a gap of four years, the Telangana govt will be part of the Pradhan Mantri Fasal Bima Yojana again. The state govt has taken an in-principle decision to be part of the scheme, which the previous govt opted out of. Gujarat was another state that opted out of the Pradhan Mantri Fasal Bima Yojana.

The state govt is looking at drawing up a mechanism where compensation claims are settled soon. After the Congress govt took over in December 2023, chief minister A Revanth Reddy announced plans to implement crop insurance. There was a proposal to implement the scheme with only the state govt completely taking care of it.

"After several discussions, it was decided that the state govt will implement the scheme in partnership with the Centre, where both the Centre and the state will pay the premium." The Centre has given three options to implement the scheme and choose an insurance model. "However, the state govt is also looking at fixing the responsibility on insurance companies to ensure that all the compensation claims are settled. There were some cases where genuine claims did not get compensation," said sources.

Research done by the Centre found that only 42% of claims in the country were disbursed within 3-6 months, 23% were disbursed within 2-3 months, and 21% required more than 6 months to be settled. Many states settle significant lawsuits within 3-6 months. It was suggested that to ensure effective programme execution, the time lag for claim payment must be reduced.


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