Searching Case Laws & Precedent on Legal Query..!
Scanned Judgements…!
Searching Case Laws & Precedent on Legal Query..!
Scanned Judgements…!
Insurance Provider - The Pradhan Mantri Fasal Bima Yojana (PMFBY) is implemented through designated insurance companies, not banks. Multiple sources specify that an insurance company acts as the insurer or implementing agency under the scheme. For example, Agriculture National Insurance Company was selected as insurer( Implementing Agency) under the PMFBY ["BRANCH MANAGER JILA SAHAKARI KENDRIYA BANK MARYADIT BRANCH BHAISDEHI vs RAMU PAL S/O BUDDHU PAL & OTHERS - Consumer National"], and insurance under Pradhan Mantri Fasal Bima Yojana(PMFBY) in the present fasli year within the time stipulated by this Court involves the insurance company ["Jegathiswaran vs The Principal Secretary - Madras"].
Bank Role - Banks primarily facilitate the collection of premiums and open accounts for farmers under the scheme. They are not the providers of insurance coverage. For instance, the liability to settle the claim is that of the insurance company and not the bank ["Agriculture Insurance Company of India Ltd. vs Sh. Shahid Husain & another - Consumer State"], and the role of the bank was only to credit/remit the premium of the farmer with the concerned insurance company ["INDMAD000002067"].
Implementation & Claims - The operational guidelines emphasize that insurance companies are responsible for claim settlement and coverage, while banks act as intermediaries for premium collection. The scheme was implemented in Tamil Nadu and that the Agricultural Department has no role in the sanction and disbursement of claim amount except monitoring ["BRANCH MANAGER JILA SAHAKARI KENDRIYA BANK MARYADIT BRANCH BHAISDEHI vs RAMU PAL S/O BUDDHU PAL & OTHERS - Consumer National"], and the insurance amount in respect of agriculture lands... under the scheme of Pradhan Mantri Fasal Bima Yojana is paid by the insurance company ["Jegathiswaran vs The Principal Secretary - Madras"].
Analysis and Conclusion:The Pradhan Mantri Fasal Bima Yojana (PMFBY) is provided and managed by designated insurance companies, which are responsible for underwriting, claim settlement, and coverage. Banks serve as facilitators for premium collection and account management but do not directly provide or insure crops under the scheme. This distinction is consistently upheld across multiple court rulings and official guidelines ["BRANCH MANAGER JILA SAHAKARI KENDRIYA BANK MARYADIT BRANCH BHAISDEHI vs RAMU PAL S/O BUDDHU PAL & OTHERS - Consumer National"], ["Jegathiswaran vs The Principal Secretary - Madras"].
References:- ["BRANCH MANAGER JILA SAHAKARI KENDRIYA BANK MARYADIT BRANCH BHAISDEHI vs RAMU PAL S/O BUDDHU PAL & OTHERS - Consumer National"]- ["PANCHAVARNAM.S Vs THE REGIONAL MANAGER - Madras"]- ["Agriculture Insurance Company of India Ltd. vs Sh. Shahid Husain & another - Consumer State"]- ["Jegathiswaran vs The Principal Secretary - Madras"]
Imagine a farmer in rural India facing crop failure due to drought. They turn to the Pradhan Mantri Fasal Bima Yojana (PMFBY) for relief, but confusion arises: Will the insurance company or the bank handle the claim? This is a common question among farmers availing crop insurance under this government-backed scheme. Will the Pradhan Mantri Fasal Bima Yojana (Prime Minister's Crop Insurance Scheme) be provided by an insurance company or a bank?
In this post, we break down the roles, responsibilities, and legal insights from court judgments to clarify this. Understanding these distinctions can help farmers navigate claims effectively and avoid delays.
Launched by the Government of India, PMFBY is a crop insurance scheme aimed at protecting farmers from losses due to natural calamities, pests, or diseases. It covers yield losses and provides financial stability. The scheme operates on a shared premium model, with subsidies from central and state governments.
However, implementation involves multiple players: insurance companies, banks, and cooperatives. Court cases reveal a collaborative yet clearly delineated framework. As per operational guidelines, insurance companies are primarily responsible for underwriting and settling claimsPatel Jayantibhai Prabhubhai vs The Manager - 2025 0 Supreme(Guj) 1187, while banks handle premium collectionAbasaheb VS State of Maharashtra - 2017 0 Supreme(Bom) 1272.
Insurance companies form the backbone of PMFBY's core functions. They underwrite policies, assess losses, process claims, and disburse compensation. Legal documents emphasize their administrative authority.
For instance, in one case, the court directed the insurance company to settle claims promptly, underscoring their obligation to maintain scheme integrity Patel Jayantibhai Prabhubhai vs The Manager - 2025 0 Supreme(Guj) 1187. Another ruling held that an insurance company cannot reject a claim on the basis of delayed premium payment if it has already accepted the proposal and premiumV.PANNEERSELVAM vs THE DISTRICT COLLECTOR - 2024 Supreme(Online)(MAD) 300. Here, petitioners availed loans under PMFBY, and despite a minor delay, the insurer had to honor the claim since premiums were remitted within limits.
Key responsibilities include:- Underwriting crop coverage based on notified areas and seasons.- Conducting crop-cutting experiments for loss assessment.- Ensuring timely claim settlements, often within 2-3 months post-harvest.
Courts have reinforced this: If the petitioner satisfies all requirements for crop insurance under the PMFBY Scheme, the first respondent insurer must disburse the insurance amountSomasundaram VS Senior Regional Manager, Agriculture Insurance Company of India Ltd. - 2020 Supreme(Mad) 2030.
Banks and cooperatives act as intermediaries, not primary providers. Their main duty is collecting premiums from farmers (often auto-debited from crop loans) and depositing them with insurersAbasaheb VS State of Maharashtra - 2017 0 Supreme(Bom) 1272.
A notable case highlights this: Banks accepted premiums but failed to deposit them timely, causing claim delays. The court held banks liable, stating they must facilitate smooth operations by prompt depositsAbasaheb VS State of Maharashtra - 2017 0 Supreme(Bom) 1272. In another instance, a bank's data entry error (wrong crop name) led to liability for compensation, as banks must enter correct data as agentsManager, Pragathi Krishna Gramin Bank VS Ravindragouda.
Limitations on banks' roles:- No authority to underwrite or settle claims.- Liability arises only from failures like delayed remittances or errors Branch Manager, Punjab National Bank VS Dinesh Kumar Mishra - Consumer (2023).- Premiums are debited via banks, but acceptance rests with insurers V.PANNEERSELVAM vs THE DISTRICT COLLECTOR - 2024 Supreme(Online)(MAD) 300.
Both entities can face joint or several liability. Liability for delays or non-payment can extend to both banks and insurance companiesBranch Manager, Punjab National Bank VS Dinesh Kumar Mishra - Consumer (2023). For example:- If banks delay premium deposits, they share blame Abasaheb VS State of Maharashtra - 2017 0 Supreme(Bom) 1272.- Insurers must settle even if state subsidies are delayed, but courts have quashed unfair directives Universal Sompo General Insurance Co. Ltd. VS State Of Gujarat - 2022 Supreme(Guj) 1108. In a Gujarat case, the court ruled against forcing insurers to pay without state subsidy release, noting payment of prior premium is sine qua non for insurance contractsUniversal Sompo General Insurance Co. Ltd. VS State Of Gujarat - 2022 Supreme(Guj) 1108.
Other cases show remands for evidence on crop losses, stressing need for assessments before awards Tata AIG General Insurance Co. Ltd. VS C. Venkataramana.
Multiple judgments illustrate real-world applications:- Premium delays: Banks debit post-cutoff but remit timely—insurer must accept V.PANNEERSELVAM vs THE DISTRICT COLLECTOR - 2024 Supreme(Online)(MAD) 300.- Data errors: Banks liable for wrong crop entries, entitling farmers to correct sums Manager, Pragathi Krishna Gramin Bank VS Ravindragouda.- Scheme coverage: Applies per PMFBY guidelines; modifications binding V.Dharmalingam vs The State of Tamil Nadu - 2022 Supreme(Online)(MAD) 35207.- Rectification: Courts allow representations for errors in applications PANCHAVARNAM.S Vs THE REGIONAL MANAGER.
These cases affirm: Core administration resides with insurance companies; banks facilitate financiallyGyanoji VS National Insurance Company Ltd. - Consumer (2025).
To maximize PMFBY benefits:- Ensure premiums are debited via bank loans and track remittances.- Submit claims promptly with yield proofs.- Approach district authorities or insurers first; escalate to consumer forums or high courts if needed.- Verify notified crops and areas per season.
Strengthen mechanisms include clearer guidelines on roles and monitoring for timely actions, as suggested in analyses Gyanoji VS National Insurance Company Ltd. - Consumer (2025).
Disclaimer: This post provides general insights based on referenced legal documents. It is not legal advice. Consult a qualified lawyer or scheme authorities for specific cases. Laws and guidelines may evolve; check official PMFBY portals for updates.
References:- Patel Jayantibhai Prabhubhai vs The Manager - 2025 0 Supreme(Guj) 1187, Abasaheb VS State of Maharashtra - 2017 0 Supreme(Bom) 1272, Branch Manager, Punjab National Bank VS Dinesh Kumar Mishra - Consumer (2023), Gyanoji VS National Insurance Company Ltd. - Consumer (2025), V.PANNEERSELVAM vs THE DISTRICT COLLECTOR - 2024 Supreme(Online)(MAD) 300, Somasundaram VS Senior Regional Manager, Agriculture Insurance Company of India Ltd. - 2020 Supreme(Mad) 2030, Universal Sompo General Insurance Co. Ltd. VS State Of Gujarat - 2022 Supreme(Guj) 1108, Manager, Pragathi Krishna Gramin Bank VS Ravindragouda, PANCHAVARNAM.S Vs THE REGIONAL MANAGER
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In the above context, it would be appropriate to mention the main provisions of the Prime Minister Crop Insurance Scheme. ... As per the arguments of the learned counsel for the appellant bank, the insurance premium amount of Rs. 997.50/- was deducted on 15/01/2018 from the KCC account No. 194000429225 of respondent No. 1/complainant for crop insurance under the Pradhan Mantri Fasal#HL_E....
It is the case of the petitioner that she has submitted an application for crop insurance under the Pradhan Mantri Fasal Bima Agriculture Crop Insurance to the petitioner for the year 2017-2018 under the Pradhan Mantri Fasal Bima Yojana Scheme by considering the representation dated 16.02.2022 made by the petitioner. ... No prejudice wou....
They have availed agricultural loan under Pradhan Mantri Fasal Bima Yojana [PMFBY] and also subscribed to the crop insurance scheme. ... ORDER These writ petitions are filed challenging the rejection of the petitioners' crop insurance claim under the Pradhan Mantri Fasal Bima Yojana. ... They availed agricultural loan from the....
Further, as per Clause 2 of the Policy Document issued under Pradhan Mantri Fasal Bima Yojana (PMFBY), it has been specifically stated Mantri Fasal Bima Yojana (PMFBY) read as under: Mantri Fasal Bima Yojana Scheme by the Department of Agriculture, guidelines issued by the Government of India. ... Mantri #H....
Pradhan Mantri Fasal Bima Yojana (PMFBY) Scheme. ... 6.Accordingly, this Court directs the petitioner to pay the insurance premium amount payable under the Pradhan Mantri Fasal Bima Yojana (PMFBY) Scheme for availing crop insurance amount for the year 2020-21 for his property ... It is his case that he is eligible t....
It is the case of the petitioner that she has submitted an application for crop insurance under the Pradhan Mantri Fasal Bima Yojana Scheme for the year 2017-18. ... No prejudice would be caused to the respondents, if the representation seeking for rectification of the error in her earlier application submitted for crop insurance under the Pradhan Mantri Fasal #....
Scope of Cover The Scope of Cover shall be as defined in the Operational Guidelines of Pradhan Mantri Fasal Bima Yojana (PMFBY) and any modifications in the same shall be applicable. ... Clause 17 and 22 of the Policy Document issued under Pradhan Mantri Fasal Bima Yojana (PMFBY) read as under: “17. ... In my view, the petitioner ought to have first exhausted the alternate remedy that is prescribed under the Operat....
coming under the Ministry of Agriculture, Union of India and in principal the Insurance Company has agreed to settle all the farmers of the concerned area under the Pradhan Mantri Fasal Bima Yojana (PMFBY) Scheme and prays for appropriate orders. ... Fasal Bima Yojana (PMFBY) Scheme for the Rabi Season 2016-17 to the eligible formers coming under the above said notified area. ......
Mantri Fasal Bima Yogna (PMFBY) Scheme for season 2016-2017 within the time as may be prescribed by this Court. ... insurance amount in respect of the petitioner's lands in Thombakulam Village, Vembakottai Taluk, Virudhunagar District insured under the Pradhan Mantri Fasal Bima Yogna (PMFBY) Scheme for season 2016-2017 within the time as may be prescribed by this Court. ... In that Rs.8,03,417/ (Eight lakhs three t....
It is not disputed that the complainant had opened an account with the bank under Pradhan Mantri Fasal Bima Yojana (PMFBY) for Rabi Season 2018-19. ... Learned counsel for the insurance company has drawn our attention towards the operational guidelines under Pradhan Mantri Fasal Bima Yojana (PMFBY), wherein under the heading “5. ... The respondent No. 2 / opposi....
The State of Gujarat has implemented PMFBY from Kharif 2016 to Rabi 2019-20. This is to draw your attention towards long pending State share of premium subsidy in the State of Gujarat under Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS). Timely release of State subsidy is of essence and any delay in the same may result in significant delay in claim settlement to affected farmers of your State.
We seen that, it is not in dispute that Respondents had availed weather based crop insurance policy scheme from Pradhan Mantri Fasal Bhima Yojana (PMFBY) for the year 2016-17 and it is for Maize crop with Respondent-2. Perused the Appeal memo, order passed by the District Forum and materials on record. It is not in dispute that the premium towards the crop insurance of Rs.3,015/- and Rs.3,024/- respectively was paid through Appellant Bank to the extent of 7 acres 34 guntas in survey No.221/3 and 7 acres 35 guntas in survey No.221/2 of Mandalageri Village. It is also not in ....
c) All Employees are covered under: i. Pradhan Mantri Suraksha Bima Yojana (PMSBY) ii. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) Penalty in case of Non-payment of minimum wages as applicable Clause 8.3 (ix) : Non-payment of Salary, Wages, other Benefits &Insurance as per clause 5.1.18 for the manpower employed at ROs.
OP2 has taken a contention before the District Forum that the Proposal Form of the farmers in the locality of P Mahadevapura Village was not within the cut off date, as per Ex-B1 & B2 and OP1 has not sent the Premium amount collected from the Farmers/Complainants. On failure of rain & other related natural calamities, the Complainants have suffered loss during the year 2015-16 for which they have preferred their individual Claims on OPS and approached OPs 2 & 3 several times, but, they have not settled the Claims. It is observed that as per the guidelines issued, the Complainants w....
3. It is the case of the petitioner that, he is an agriculturalist, holding an extent of 10.745 hectares at Uppur Village, R.S.Mangalam Taluk, Ramnad District. According to the petitioner, as per the PMFBY Scheme, the insurance premium has to be paid through the local Cooperative Societies. According to him, the first respondent is the Authority, issuing crop insurance under the Pradhan Mantri Fasal Bima Yojana (hereinafter referred as 'PMFBY' Scheme) introduced by the Central Government.
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