Lok Sabha Question No. 1605 (UNSTARRED), answered on 2017-07-25
Subject: National Crop Insurance Programme
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: SATYA PAL SINGH

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

## LOK  SABHA UNSTARRED QUESTION NO.1605

TO BE ANSWERED ON THE  25 TH  JULY, 2017

## NATIONAL CROP INSURANCE PROGRAMME

1605.  DR. SATYAPAL SINGH:

Will  the  Minister  of  AGRICULTURE  AND  FARMERS  WELFARE      ‡ãðŠãäÓã एवं  कसान कयाण ½ãâ¨ããè be pleased to state:

- (a) the  details  of  the  salient  features  of  the  National  Crop  Insurance  Programme (NCIP);
- (b) the number of complaints for non-payment or delayed payments received by the Government  along  with  the  number  of  complaints  disposed  off  under  the  said programme during each of the last three years and the current year, State/UT-wise;
- (c) whether  it  is  a  fact  that  there  has  been  gap  between  the  funds  allocated  and released  to  the  implementing  agencies  under  the  said  Programme  during  the  said period and if so, the details thereof, State/UT-wise and the reasons therefor;
- (d) whether  the  Government  has  fixed  any  target  for  participation  of  public  and private sector companies in the said Programme and if so, the details thereof along with its achievements;
- (e) the  number  of  farmers  benefited  under  the  said  Programme  during  the  said period, State-wise; and
- (f) the other steps taken/being taken by the Government for effective implementation of the said Programme across the country?

## ANSWER

MINISTER OF  STATE IN THE  MINISTRY OF  AGRICULTURE AND  FARMERS  WELFARE

‡ãðŠãäÓã एवं  कसान  कयाण ½ãâ¨ããÊã¾ã  ½ãñâ  Àã·¾ã  ½ãâ¨ããè (  SHRI PARSHOTTAM RUPALA)

- (a): The National Crop Insurance Programme (NCIP) with three component schemes namely,  Modified  National  Agricultural  Insurance  Scheme  (MNAIS),  Weather  Based Crop Insurance Scheme (WBCIS) and Coconut Palm Insurance Scheme (CPIS) was introduced  from  Rabi  2013-14  in  the  country  and  remained  under  implementation  till Rabi 2015-16 season.  Salient features of the scheme are at Annexure-I.

(b): During implementation of the scheme, some complaints about non-payment and delayed payment of claims; under payment of claims on account of incorrect/delayed submission of insurance proposals by banks; unrealistic assessment of crop loss due to large unit area of insurance; delay in providing Government share of funds etc., have been  received  in  the  past.      As  far  as  possible,  all  the  complaints  were  suitably addressed by the Insurer and the Ministry.

(c): No,  Madam.    All  the  funds  required  as  committed  liability  of  the  Central Government were made available  for implementation of the scheme.

(d): The scheme was implemented by Agriculture Insurance Company of India Ltd. along with empanelled private General Insurance Companies.

(e): State-wise details of farmers covered and benefited under the scheme are given in Annexure-II.

(f): On the basis of the review and consultations with stakeholders, the scheme was withdrawn from Rabi  2015-16  and  new improved Pradhan  Mantri  Fasal Bima  Yojana (PMFBY) along with Restructured Weather Based Crop Insurance Scheme (RWBCIS) have been launched from Kharif 2016 season in the country.

## ANNEXURE-I

## Salient features of National Crop Insurance Programme (NCIP)

NCIP had three  component  Schemes.    Component-wise    salient  features  of  the  NCIP  are  as under:-

## 1. Modified National Agricultural Insurance Scheme (MNAIS)

- -actuarial premium rates are charged with a provision of subsidy upto 75%, which is shared by the Central and State Governments on 50 : 50 basis;
- -entire liability of claims was on the implementing insurance companies;
- -it was compulsory for loanee farmers and optional for non-loanee farmers;
- -more proficient basis for calculation of threshold yield;
- -two higher indemnity levels of 80% & 90% instead of earlier 70%, 80% & 90%;
- -reduction in Unit Area of Insurance to village/ village Panchayat level; and
- -private insurance companies were involved to provide the benefits of competition.

## 2. Weather Based Crop Insurance Scheme (WBCIS)

- -Provided coverage against weather deviation from the notified standards on the basis of weather data received from the notified Automatic Weather Stations (AWSs) and Automatic Rain-gauges (ARGs);
- -actuarial premium rates were charged with a provision of subsidy upto 50%, which was shared by the Central and State Governments on 50 : 50 basis;
- -entire liability of claims was on the implementing insurance companies;
- -it was compulsory for loanee farmers and optional for non-loanee farmers;
- -add on coverage in respect of hailstorm and cloud burst on individual assessment basis.
- -private insurance companies were also involved to provide the benefits of competition.

## 3. Coconut Palm Insurance Scheme (CPIS)

- -Individual  farmer/planter/grower  offering  at  least  5  healthy  nut  bearing  palms  in  a  contiguous area/plot was eligible for insurance;
- -Provide coverage against total loss of palm on account of happening of peril insured leading to death of the insured palm or its becoming unproductive;
- -Fixed premium rates ranging from Rs. 9/- to Rs. 14/- per palm depending upon the age of palm. However, Government was providing subsidy upto 50% by GOI and 25% by State Government;
- -Sum insured per palm was ranging from Rs. 900/- to Rs. 1750/-;
- -Scheme was being implemented by AIC.

## ANNEXURE-II

## Number of farmers insured and number of farmers benefited under Erstwhile NCIP Component schemes during 2014-15 and 2015-16

| Sl. No.   | State/UT          | Year 2014-15           | Year 2014-15             | YEAR 2015-16           | YEAR 2015-16             |
|-----------|-------------------|------------------------|--------------------------|------------------------|--------------------------|
| Sl. No.   | State/UT          | No. of farmers insured | No. of farmers benefited | No. of farmers insured | No. of farmers benefited |
| 1         | Andaman & Nicobar | 783                    | 184                      | 0                      | 0                        |
| 2         | Andhra Pradesh    | 362997                 | 102899                   | 1086410                | 331772                   |
| 3         | Assam             | 23351                  | 21738                    | 43424                  | 24391                    |
| 4         | Bihar             | 2294853                | 1612432                  | 0                      | 0                        |
| 5         | Chhatisgarh       | 974199                 | 590731                   | 0                      | 0                        |
| 6         | Goa               | 160                    | 0                        | 136                    | 82                       |
| 7         | Gujarat           | 0                      | 0                        | 0                      | 0                        |
| 8         | Haryana           | 22                     | 7                        | 0                      | 0                        |
| 9         | Himachal Pradesh  | 99015                  | 89046                    | 136333                 | 85944                    |
| 10        | Jammu & Kashmir   | 1364                   | 1364                     | 0                      | 0                        |
| 11        | Jharkhand         | 193925                 | 160874                   | 0                      | 0                        |
| 12        | Karnataka         | 1113818                | 444079                   | 401                    | 43                       |
| 13        | Kerala            | 51752                  | 24963                    | 62335                  | 35765                    |
| 14        | Madhya Pradesh    | 168771                 | 165535                   | 249320                 | 166304                   |
| 15        | Maharashtra       | 1425353                | 1284657                  | 839822                 | 785798                   |
| 16        | Manipur           | 0                      | 0                        | 0                      | 0                        |
| 17        | Meghalaya         | 0                      | 0                        | 0                      | 0                        |
| 18        | Mizoram           | 0                      | 0                        | 0                      | 0                        |
| 19        | Orissa            | 132                    | 1                        | 21                     | 1                        |
| 20        | Pondicherry       | 0                      | 0                        | 0                      | 0                        |
| 21        | Rajasthan         | 9886728                | 6668478                  | 10956917               | 7749694                  |
| 22        | Sikkim            | 0                      | 0                        | 0                      | 0                        |
| 23        | Tamil Nadu        | 44970                  | 12265                    | 89                     | 10                       |
| 24        | Telengana         | 780268                 | 138035                   | 309764                 | 162033                   |
| 25        | Tripura           | 0                      | 0                        | 0                      | 0                        |
| 26        | Uttar Pradesh     | 1759441                | 1175288                  | 3795359                | 2168369                  |
| 27        | Uttarakhand       | 79233                  | 52133                    | 150111                 | 41616                    |
| 28        | West Bengal       | 1082495                | 137290                   | 14837                  | 8888                     |
|           | GRAND TOTAL       | 20343630               | 12681999                 | 17645279               | 11560710                 |

Note: NCIP was replaced with new PMFBY from Kharif 2016, hence no data of NCIP for 2016-17

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