Searching Case Laws & Precedent on Legal Query..!
Scanned Judgements…!
Searching Case Laws & Precedent on Legal Query..!
Scanned Judgements…!
Claim Settlement Process - Under the Pradhan Mantri Fasal Bima Yojana (PMFBY), farmers should receive their insurance claims through the insurance company, often facilitated by the bank that disbursed the premium. The operational guidelines specify that the insurance company is responsible for assessing and settling claims, while banks act primarily as intermediaries for premium collection and submission of claim proposals ["BRANCH MANAGER JILA SAHAKARI KENDRIYA BANK MARYADIT BRANCH BHAISDEHI vs RAMU PAL S/O BUDDHU PAL & OTHERS - Consumer National"], ["S.SUNDARRAJ vs THE DISTRICT COLLECTOR - Madras"].
Role of Banks - Banks are involved in collecting premiums from farmers and submitting claim proposals to the insurance companies. They are not liable for claim settlement themselves; the insurance companies independently verify and disburse claims based on the guidelines ["BRANCH MANAGER JILA SAHAKARI KENDRIYA BANK MARYADIT BRANCH BHAISDEHI vs RAMU PAL S/O BUDDHU PAL & OTHERS - Consumer National"], ["HDFC BANK LTD. vs PRAHLAD SINGH - Consumer State"], ["Punjab National Bank, Ramanathapuram Branch, Rep. by its Branch Manager VS Chairman / District Judge, Permanent Lok Adalat, District Court Campus, Ramanathapuram - Madras"].
Insurance Company Responsibilities - The insurance companies are tasked with verifying crop damage, often using satellite imagery and other proxy indicators, and settling claims directly with farmers. They are also responsible for ensuring claims are processed as per the operational guidelines, which include verifying crop loss and crop details ["S.SUNDARRAJ vs THE DISTRICT COLLECTOR - Madras"], ["NAMMALVAR vs UNION OF INDIA - Madras"], ["V. JESU ARUL vs THE SECRETARY TO GOVT. - Madras"].
Dispute Resolution & Implementation - Farmers are advised to approach insurance companies first for claim disputes, as the scheme’s operational guidelines emphasize direct settlement between insurers and claimants. The courts have consistently reiterated that the insurance companies are responsible for claim payments, not the banks, and that farmers should pursue claims through the insurance providers ["BRANCH MANAGER JILA SAHAKARI KENDRIYA BANK MARYADIT BRANCH BHAISDEHI vs RAMU PAL S/O BUDDHU PAL & OTHERS - Consumer National"], ["V.PANNEERSELVAM vs THE DISTRICT COLLECTOR - Madras"], ["Zonal Manager The New India Assurance Co. Ltd. vs P.Hemarani W/o S.Palanisamy & Anr. - Consumer State"].
Conclusion - Farmers under PMFBY should receive their crop insurance claims directly from the insurance companies. Banks serve as facilitators for premium collection and claim proposals, but the ultimate responsibility for claim disbursement lies with the insurance providers, following the scheme’s operational guidelines and legal precedents ["BRANCH MANAGER JILA SAHAKARI KENDRIYA BANK MARYADIT BRANCH BHAISDEHI vs RAMU PAL S/O BUDDHU PAL & OTHERS - Consumer National"], ["S.SUNDARRAJ vs THE DISTRICT COLLECTOR - Madras"].
Crop failures due to natural calamities can devastate farmers' livelihoods. In India, the Pradhan Mantri Fasal Bima Yojana (PMFBY) offers financial protection through crop insurance. But a common question arises: Under the Pradhan Mantri Fasal Bima Yojana, farmers should receive their claims from the bank or insurance company?
This blog explores the legal framework, eligibility criteria, roles of banks and insurers, and key court rulings. While this provides general insights based on judicial precedents, it is not legal advice—consult a qualified lawyer for specific cases.
Launched in 2016, PMFBY aims to protect farmers from crop losses due to weather events, pests, and diseases. Claims are typically disbursed directly to farmers' bank accounts, but the responsibility involves multiple stakeholders: insurance companies, banks, and nodal agencies. Courts have consistently held that farmers are entitled to claims if they fulfill procedural requirements, with insurers and banks obligated to process them accurately and promptly. Patel Jayantibhai Prabhubhai vs The Manager - 2025 0 Supreme(Guj) 1187
Key legal finding: Farmers receive claims provided they submit valid documentation and meet scheme conditions, while insurers must disburse promptly. Somasundaram VS Senior Regional Manager, Agriculture Insurance Company of India Ltd. - 2020 0 Supreme(Mad) 2030
To qualify:- Farmers must enroll via banks or common service centers during sowing.- Submit claims with proof of loss, such as photos or yield assessments.- Ensure crop details match notified areas.
Courts emphasize: Farmers who meet the criteria under the scheme are entitled to insurance benefits. Patel Jayantibhai Prabhubhai vs The Manager - 2025 0 Supreme(Guj) 1187 Once verified, disbursement follows. Somasundaram VS Senior Regional Manager, Agriculture Insurance Company of India Ltd. - 2020 0 Supreme(Mad) 2030
Claims flow through a collaborative system:- Insurance Companies: Assess losses using satellite imagery, yield data, or surveys. They process and approve claims per operational guidelines. S.PRABAKAR DURAI, Vs THE GOVERNMENT OF TAMILNADU, The Operational Guidelines of Pradhan Mantri Fasal Bima Yojana issued by the Government of India (Para XI.3.(g), 6. (a) the Satellite imagery being one of the proxy indicators to invoke the risk...- Banks/Nodal Agencies: Collect premiums, enter farmer data (crop, area, village), and credit payouts. Errors here can delay or deny claims.
Joint liability applies for data errors. In one case, the liability regarding crop insurance claims lies jointly or severally with both the bank and the insurance company, especially when errors such as incorrect crop name entries occur. Branch Manager, Punjab National Bank VS Dinesh Kumar Mishra - Consumer (2023) Nodal banks must rectify mistakes like wrong village names. New India Assurance Company Ltd. VS S. Sumathy - 2025 0 Supreme(Mad) 2173
Premium subsidies are crucial—central and state governments share them. Delays in state shares don't absolve insurers from paying farmers once premiums are deemed paid. However, courts quash orders forcing payouts without subsidies, noting: The payment of prior premium is a Sine qua non of coming into force of any contract of insurance. Universal Sompo General Insurance Co. Ltd. VS State Of Gujarat - 2022 Supreme(Guj) 1108
Common pitfalls include mismatched crop names or villages, often due to bank data entry. Courts direct rectification:- Banks must verify and correct data. New India Assurance Company Ltd. VS S. Sumathy - 2025 0 Supreme(Mad) 2173- Errors from collaborative processes lead to joint responsibility. Branch Manager, Punjab National Bank VS Dinesh Kumar Mishra - Consumer (2023)
Mistakes in data entry, if rectified timely, should not prevent farmers from receiving their rightful claims. Manager, Pragathi Krishna Gramin Bank VS Ravindragouda - Consumer (2022)
In consumer disputes, forums remand cases for loss assessments, stressing evidence of crop damage. Tata AIG General Insurance Co. Ltd. VS C. Venkataramana In order to award compensation... some evidence is required.
Guidelines mandate quick settlements:- Insurers settle post-harvest assessments.- Delays violate obligations. Courts direct: Settle claims promptly when farmers have fulfilled necessary documentation. Patel Jayantibhai Prabhubhai vs The Manager - 2025 0 Supreme(Guj) 1187
Scope of cover follows PMFBY guidelines, including modifications. Farmers must exhaust grievance remedies first. V.Dharmalingam vs The State of Tamil Nadu - 2022 Supreme(Online)(MAD) 35207 The petitioner ought to have first exhausted the alternate remedy that is prescribed under the Operational Guidelines...
Claims may be denied if:- Documentation is incomplete or inaccurate.- Farmers miss cut-off dates for proposals. Tata AIG General Insurance Co. Ltd. VS C. Venkataramana- Non-compliance with scheme conditions, like unsubsidized premiums.
Data errors require rectification but don't automatically bar claims. Insurers aren't liable without established eligibility. State subsidy delays can complicate, but farmers' rights persist post-resolution. Universal Sompo General Insurance Co. Ltd. VS State Of Gujarat - 2022 Supreme(Guj) 1108
Other schemes like PMSBY/PMJJBY appear in unrelated contexts (employee insurance), but PMFBY focuses on crops. Indian Oil Corporation Limited VS All India Petroleum Dealers Association Registered - 2022 Supreme(Del) 286
To maximize claim success:- Enroll early and double-check data entry at banks.- Document losses with photos, GPS, and yield proofs.- Use grievance portals or approach district authorities.- Monitor notifications for notified crops/areas.
For stakeholders:- Banks: Implement verification protocols.- Insurers: Adhere to timelines and satellite-based assessments. S.PRABAKAR DURAI, Vs THE GOVERNMENT OF TAMILNADU,- Governments: Release subsidies promptly to avoid disputes. Universal Sompo General Insurance Co. Ltd. VS State Of Gujarat - 2022 Supreme(Guj) 1108
Under PMFBY, farmers generally receive claims from insurance companies via direct bank credits, but banks play a pivotal role in data and disbursement. Success hinges on accurate documentation, error-free data, and timely processing. Courts protect farmers' rights while holding stakeholders accountable.
Key takeaways:- Meet all procedural requirements.- Insist on data rectification.- Claims are your right if eligible—pursue through proper channels.
Stay informed on PMFBY updates via official sites. For personalized guidance, reach out to agricultural departments or legal experts. Protect your crops, secure your future!
#PMFBY, #CropInsurance, #FarmersRights
The issue pertains to insurance claims under Pradhan Mantri Fasal Bima Yojana ( PMFBY) issued by Government of India, Department of Agriculture, Cooperation and Farmers Welfare. Agriculture National Insurance Company was selected as insurer( Implementing Agency) under the PMFBY. ... District Cooperative Central Bank Limited, Betul was the nodal bank under the Pradhan#HL....
Clause XVI-7 of the Operational Guidelines of Pradhan Mantri Fasal Bima Yojana reads as follows:- “XVI. ... He paid the requisite premium under Pradhan Mantri Fasal Bima Yojana (PMFBY). The case on hand pertains to the year 2018 – 2019. It appears that some mistake was committed while uploading the details in the web portal. ... / Insurance Company /Banks and the farmer....
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. ... The Operational Guidelines of Pradhan Mantri Fasal Bima Yojana issued by the Government of India (Para XI.3.(g), 6. (a) the Satellite imagery being one of the proxy indicators to invoke the risk, the company....
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. ... In my view, the petitioner ought to have first exhausted the alternate remedy that is prescribed under the Operational Guidelines under the Pradhan Mantri Fasal Bima Yojana Scheme by the Department of Agriculture, Cooperation and #....
In that Rs.8,03,417/ (Eight lakhs three thousand four hundred and seventeen only) was given to 138 farmers under Pradhan Mantri Fasal Bima Yojana 2016-2017 in Srivilliputhur Taluk. 14. ... Fasal Bima Yojana 2016-17 in which a sum of Rs.16.94 crore had been sanctioned exclusively for Cotton Crop, out of this Rs.16.91 crore has been disbursed to 8,176 farmers of Virdhunagar District. ... Mantri #HL_....
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: Yojana (PMFBY) and any modifications in the same shall Mantri Fasal Bima Yojana Scheme by the Department of Agriculture, guidelines issued ....
Bima Yojana. ... of the petitioner as per the Scheme of Pradhan Mantri Fasal The Regional Manager, Agriculture Insurance Company Of p style="position:absolute;white-space:pre;margin:0;padding:0;top:521pt;left:159pt
Fasal Bima Yojana and the aims and objectives of the PMFBY. ... This Court in the order dated 07.10.2020 noticing that in July – 2017, on account of uncontrolled floods in the State of Gujarat, crops of the farmers were completely destroyed and these farmers are registered under the Pradhan Mantri Fasal Bima Yojana (PMFBY) and were entitled to compensation but payments ... The insurance ....
Mantri Fasal Bima Yojana” contemplated the scheme introduced by the 1st respondent. ... The crops were covered under the scheme of “Pradhan Mantri Fasal Bima Yojana”. When the paddy crops reached final stage, the “Blast Disease” (Kulai Noi) attacked the crops and the petitioner suffered financial loss and an application was filed to sanction the benefit under the said scheme. ... Then only the Insurance C....
Mantri Fasal Bima Yojana (PMFBY) forthwith as admissible to the petitioner for the year 2017-2018. ... (MD) No.2065 of 2020, dated 18.04.2023 considered similar issue and passed the following order: 8.Clause 11 of the Operational Guidelines for the Pradhan Mantri Fasal Bima Yojana would read as follows: “11.Insurance companies ... Respondents Prayer: Petition filed under Article 226 of the Constitution of India, pr....
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). 3.1. The Central Government has notified Pradhan Mantri Fasal Bima Yojana (hereinafter referred to as PMFBY) in the year 2016 for the benefit of the farmers against the loss/ failure of the crop due to natural calamities, paste and disease. The said scheme came to be ....
c) All Employees are covered under: i. Pradhan Mantri Suraksha Bima Yojana (PMSBY) ii. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) It was pointed out that under the PMSBY, which is an Insurance scheme, the premium is in the affordable range, being Rs.12/- per employee per annum and similarly, under the PMJJBY, the premium is Rs.330/- per employee per annum. Defending the amendments with respect to payment of statutory dues, such as Provident Fund, ESIC benefit, Bonus, Annual leave and Gratuity including coverage under the Pradhan Mantri Suraksha Bima Yojana ....
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.
(c) All Employees are covered under: (i) Pradhan Mantri Suraksha Bima Yojana (PMSBY). Dealers are required to maintain records and the records should be made available at the retail outlet for inspection, at all times. (b) PF, ESIC, Bonus, Annual Leave and Gratuity are paid as notified by OMCs/Statute. (ii) Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
