Lok Sabha Question No. 1736 (UNSTARRED), answered on 2018-03-06
Subject: Modified Crop Insurance Scheme
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: BHAVANA GAWALI (PATIL)

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK  SABHA UNSTARRED QUESTION NO.1736

TO BE ANSWERED ON THE 6 TH  March, 2018

## MODIFIED CROP INSURANCE SCHEME

1736.     SHRIMATI BHAVANA PUNDALIKRAO GAWALI PATIL:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) whether the Government proposes to modify the crop insurance scheme for making the scheme more profitable for the farmers;
- (b) if so, the details thereof;
- (c) the details of the precautions taken by the Government to make the said scheme more effective to protect the farmers from the burden of premium and losses to be incurred due to crop damages;
- (d) whether inordinate delay is taking place in the disposal of claims of the farmers; and
- (e) if so, the details of the steps taken by the Government for speedy disposal of the claims under the scheme?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंालय म राय मंी (SHRI  PARSHOTTAM  RUPALA)

(a) to (c):  Keeping in view the welfare of farmers and to protect them  against consequences of crop failure Government of India reviewed the erstwhile crop insurance schemes and launched the new improved schemes of  Pradhan Mantri Fasal Bima Yojana (PMFBY) and  Restructured Weather Based Crop Insurance Scheme (RWBCIS) from April, 2016.

PMFBY provides for comprehensive risk insurance from pre-sowing to post-harvest losses and covers  yield  loss  due  to  non-preventable  natural  risks  viz.  natural  fire  and  lightening;  storm, hailstorm, cyclone, typhoon, tempest, hurricane, tornado etc.;  flood, inundation and landslide; drought,  dry  spells;  pests/  diseases  etc.    On  the  other  hand,  RWBCIS  provides  insurance protection/claims to the farmers against adverse weather/climatic incidence, such as deficit and excess rainfall, high or low temperature, humidity etc. which are deemed to impact adversely the crop production.  To make the scheme simple and affordable, one premium rate of maximum of 1.5% for Rabi, 2% for Kharif food and oilseed crops and 5% for annual commercial/horticultural crops is being charged from the farmers, the balance of actuarial/ bidded premium is shared by the Centre and State on equal basis.

(d) & (e) :   Under erstwhile schemes,  delay in claim processing and settlement was primarily on  account  of  delay  due  to  manual  process  of  collection  of  yield  data  from  field  and  its communication/transmission to insurance companies for computation of yield loss.  This delay in disposal  of  claims  of  the  farmers  has  however,  largely  been  arrested  under    Pradhan  Mantri Fasal Bima Yojana (PMFBY).  Under the new scheme specific timelines have been stipulated for  various  activities  including  processing  and  settlement  of  claims;  real-time  collection  and transmission of yield data through Smart-phone/CCE Agri App has been made mandatory from Kharif  2017  season;  details  of  individual  farmers  captured  on  National  Crop  Insurance  Portal enable  verification,  computation  of  claims  and  also  direct  transfer  of  claim  amounts  into beneficiary accounts etc.    Due to all such measures time taken to settle claims has   generally been reduced to an average of within two months after receipt of yield data.  However, this does not include claims that are outstanding due to exceptional reasons such as delay in receipt of State share of subsidy, discrepancy in yield data, unavailability of farmer account details etc.

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