Page 8 - Insurance Times May 2023
P. 8

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
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