By S&S Co. Advocates & Solicitors · Published 2 September 2026 · Informational content, not legal advice
About this article: A general explainer prepared by S&S Co. Advocates & Solicitors on a recurring type of dispute. It does not report a specific judgment or order, names no parties and gives no case citation, so it should not be cited as authority. Law and practice change; please verify against the current statute and primary sources before relying on it.
The Pradhan Mantri Fasal Bima Yojana (PMFBY) is a crop insurance scheme under which farmers pay a small share of the premium, and the balance is met as subsidy shared between the Central and State Governments. Insurers are empanelled by the State and are expected to settle claims in accordance with the scheme's operational guidelines.
Disputes arise when a state is late in releasing its share of the premium subsidy. Insurers are generally required to settle claims on time, so a long delay in the state's share means they fund claim payments out of their own resources in the meantime. Whether the insurer can claim interest on the delayed amount depends on the operational guidelines in force for the season, the terms of the empanelment or tender documents, and the general principles on which courts award interest. Insurers have approached High Courts by writ petition for release of arrears with interest, and the results depend on the facts and the governing documents.
The guidelines have been revised over the years and contain provisions on timelines and consequences of delay. The version applicable to the relevant season should therefore be checked, and the writ route is also subject to its own limits where the claim is contractual.