Lok Sabha Question No. 3532 (UNSTARRED), answered on 2017-08-08
Subject: Insurance Coverage under Pradhan Mantri Fasal Bima Yojana
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: RAJESHBHAI NARANBHAI CHUDASAMA

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

## LOK  SABHA

## UNSTARRED QUESTION NO. 3532 TO BE ANSWERED ON THE 8 TH   AUGUST, 2017

## INSURANCE COVERAGE UNDER PRADHAN MANTRI FASAL BIMA YOJANA

## 3532.  SHRI RAJESHBHAI CHUDASAMA:

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

- (a) whether Pradhan Mantri Fasal Bima Yojana has been launched to save the farmers from crisis due to crop damage caused by vagaries of weather;
- (b) if so, the details thereof and the total amount allocated under the scheme during the current financial year;
- (c) the mandatory conditions for farmers to join the scheme;
- (d) the details of the total insurance coverage and the premium amount therefor under the scheme for the damaged foodgrains, oilseeds and cotton; and
- (e) whether there is any cap on premium, if so, the details thereof?

## 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 (d): Yes, Madam. After review of erstwhile Crop Insurance Schemes, Government has launched  yield  based  Pradhan  Mantri  Fasal  Bima  Yojana  (PMFBY)  and  weather  index  based Restructured Weather Based  Crop  Insurance  Scheme  (RWBCIS) from Kharif  2016  season. To make the schemes  advantageous for farmers, many innovative solutions have been incorporated in the new schemes, which include comprehensive crop insurance under PMFBY from pre-sowing to post harvest against non-preventable natural risks at extremely low maximum premium rate for farmers, of 2% for Kharif crops, 1.5% for Rabi Crop and 5% for annual commercial/horticultural crops, which premium rates are also applicable under RWBCIS.   The balance of actuarial/bidded premium is shared by the Central and State Government on  50 : 50 basis.    Further, not only has cap  on  premium,  which  had  earlier  led  to  reduction  in  sum  insured  been  removed  under  both schemes, but sum insured has been increased and made equal to the Scale of Finance, thereby providing maximum risk coverage to the farmers.  In an effort to provide more realistic assessment of losses, the unit area of insurance has been reduced from Tehsil/district level to village/village panchayat  level  for  major  crops  and  to  individual  farm  level  for  localised  risks  of  hailstorm, landslide and inundation.  Both the schemes are compulsory for loanee farmers availing seasonal operational loans in notified areas for notified crops and voluntary for non-loanee farmers.  While assessment  of  claims  under  PMFBY  is  made  based  on  the  yield  loss  due  to  non-preventable natural  risks  like  flood,  drought  etc.  under  RWBCIS  assessment of  claims  is  based  on  weather parameters.   A budget provision of  Rs.9000 crore has been made for current financial year i.e. 2017-18.

During 2016-17, 581 lakh ha. area was covered under crop insurance schemes for a total premium of Rs.22236 crore  and total  claims  of  about  Rs.15000  crore  have  been  estimated  for damaged crops.

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