Page 8 - Insurance Times May 2023

2019, 2020, 2021 and 2022 is 12 crore claim has been paid for the April 2022 and February 2023, claims
2,08,456; 3,94,499; 11,58,208; 5,036 cases between April 2017 and have been paid in 72 death cases and
14,02,809 and 13,91,457, respectively. February this year. Government only six in cases of injuries. The govern-
sources admitted that the trend of ment has paid Rs 1.47 crore as com-
Compensation paid in 6% compensation paid in hit-and-run cases pensation during 2022-23.
over the years is a "matter of concern"
of hit-&-run cases since
and this needs immediate attention. 38 Crore farmers enrolled
2017-18
Hit-and-run cases are those in which
The government has paid claims in in PMFBY scheme
police are unable to identify the offend-
barely 5,036 hit-and-run cases - 3,209 Agriculture minister Narendra Singh
ing vehicle or its owner and hence in
for deaths and 1,827 for persons left Tomar informed Parliament that for
these cases, the compensation is paid
every Rs 100 of premium paid by farm-
grievously injured - since 2017-18, ac-
from the government's solatium fund.
ers under the flagship scheme Pradhan
cording to official data. This is only 6%
Earlier, the compensation paid from
Mantri Fasal Bima Yojana (PMFBY),
of the number of persons killed and left
this fund was Rs 25,000 in the event
they have received about Rs 514 as
injured every year in hit and run cases
of each death and Rs 12,500 for griev-
claims. Since implementation of
on Indian roads.
ous injuries.
PMFBY in 2016, around 38 crore
On an average, 80,000 people either
In the amended Motor Vehicle Act, this
farmer applicants have been enrolled
lose their lives or are left seriously in-
compensation has been increased
and over 12.37 crore (provisional) have
jured in hit and run cases annually.
eight-fold - Rs 2 lakh in case of death received claims, he said in his written
In a written reply to a question from and Rs 50,000 in case of grievous inju- reply to the Rajya Sabha.
BJD's Anubhav Mohanty in Lok Sabha ries - and the new rule has become
"During this period, nearly Rs 25,252
recently, the road transport and high- applicable from April 2022. The data
crore were paid by farmers as their
ways ministry has said that around Rs provided by the ministry show between
share of premium against which claims
of over Rs 1,30,015 crore (provisional)
Govt will likely infuse more capital in 3 public sector have been paid to them. Thus, for ev-
ery 100 rupees of premium paid by
Insurers
farmers, they have received about Rs
The government may have to infuse more capital in the three public sector
514 as claims," the minister said.
general insurance companies to improve their financial health, a senior gov-
PMFBY was launched with an aim to
ernment official said. The government last year provided Rs 5,000 crore capi-
address problems of high premium
tal to three insurers --National Insurance Company Limited, Oriental Insur-
rates for farmers and reduction in the
ance Company Limited and United India Insurance Company.
sum-insured due to capping.
Based on the performance in the FY23, the finance ministry would take a call
In a separate reply, the minister said
as to how much capital they would require to meet regulatory requirement,
the PMFBY is available for all states/
the official said. They are not in good financial health and fund would be in-
UTs and is voluntary for them. It is also
fused in these entities to augment their solvency margin, the official added.
voluntary for the farmers to enroll
The solvency margin is the extra capital the companies must hold over and
themselves as per their risk perception.
above the claim amounts they are likely to incur. It acts as a financial backup
in extreme situations, enabling the company to settle all claims.
Centre launches DigiClaim
As per the regulator IRDAI's mandate, the minimum solvency ratio insurance
companies must maintain is 1.5 to lower risks. In terms of solvency margin, for quicker settlement of
the required value is 150 per cent. The Budget 2023-24 has not provided for
Crop insurance claims
the capital infusion for insurance companies but the funds can be sought
Agriculture Minister Narendra Singh
through supplementary demand, the official said.
Tomar launched a 'DigiClaim' platform
During 2020-21, Rs 9,950 crore was infused in three public sector general
under the national crop insurance por-
insurers by the government, out of which Rs 3,605 crore was infused in United
tal for speedy disbursal of claims to
India Insurance, Rs 3,175 crore in National Insurance and Rs 3,170 crore in
insured farmers. On the occasion, the
Oriental Insurance.
Minister also transferred an insurance
8 May 2023 The Insurance Times