Lok Sabha Question No. 1749 (UNSTARRED), answered on 2018-03-06
Subject: Implementation of Crop Insurance Scheme
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Y. S. AVINASH REDDY, MALLIKARJUN  KHARGE, BHEEMRAO BASWANTHRAO PATIL, MD. BADARIDDOZA KHAN, KALIKESH NARAYAN SINGH DEO, ABHISHEK SINGH, VIJAY KUMAR HANSDAK, LAXMI NARAYAN YADAV

## GOVERNMENT OF INDIA

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

## LOK  SABHA UNSTARRED QUESTION NO.1749

TO BE ANSWERED ON THE 6 TH  March, 2018

## IMPLEMENTATION OF CROP INSURANCE SCHEME

1749.    SHRI Y.S. AVINASH REDDY:

SHRI MALLIKARJUN KHARGE:

SHRI BHEEMRAO B. PATIL:

SHRI MD. BADARUDDOZA KHAN:

SHRI KALIKESH N. SINGH DEO:

SHRI ABHISHEK SINGH:

SHRI VIJAY KUMAR HANSDAK:

SHRI LAXMI NARAYAN YADAV:

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

- (a) whether it is a fact that various crop insurance schemes including Pradhan Mantri Fasal Bima Yojana are not being implemented properly and despite a large amount of funds being paid  as  premium  to  crop  insurance  companies,  the  claims  of  the  farmers  have  hardly  been settled so far, if so, the reasons therefor along with the corrective action taken in this regard;
- (b) whether it is also a fact that a large number of farmers are unable to take insurance due to  low  target,  bureaucraticred-tapism  and  unwillingness  of  banks    facilitate,  if  so,  the  details thereof along with the corrective action taken in this regard;
- (c) the  details  of  the  empanelled  insurance  companies/public  sector  banks  involved  in farmers crop insurance scheme, State/UT-wise including Andhra Pradesh;
- (d) whether the Government is considering to revise the funding pattern of PMFBY to 60:40 between the Centre and some States including Odisha like other central sponsored schemes, if so, the details thereof, if not, the reasons therefor and whether the Union Government would provide a contingent fund to the States for programme implementation under the Yojana;
- (e) the details of the compensation paid by various insurance companies to the farmers of various  States  including  Andhra  Pradesh,  Chhattisgarh,  Jharkhand  and  Madhya  Pradesh  for their crop loss due to natural calamities during the last three years and current year, State-wise; and
- (f) whether the Government has any proposal to make changes in Crop Insurance schemes to make them more oriented to climatic adaptation, 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) & (b): No, Madam.   The Pradhan Mantri Fasal Bima Yojana (PMFBY) is demand driven and therefore, optional for States.    It is the States which decide on what areas and how many crops are to  be notified  under the scheme.

With the launch of PMFBY  in  April, 2016  the number  of  farmers covered  increased substantially from 485  lakh  2015-16 under erstwhile schemes to  573 lakh in 2016-17.    Target is  to  increase  the  coverage  to  50%  of  Gross  Cropped  Area  in  2018-19  and  the  focus  is  to ensure more coverage of non-loanee farmers through banks, Common Service Centers (CSCs), insurance intermediaries and directly online on crop insurance portal and to encourage States to notify more crops and areas.    As far as claims are concerned, as on date, claims of Rs. 14433 crore have been approved and about 12949 crore have been paid to about 112 lakh farmers insured  during  2016-17.      This  despite,  many  implementation  challenges  during  2016-17 especially since it was the first year of the scheme implementation.

(c): Eighteen  general  insurance  companies  including  all  the  five  public  sector  insurance companies have been empanelled for implementation of the PMFBY.  However, States/Union Territories (UTs) select the implementing  insurance  companies  from  these  empanelled companies  through  transparent  bidding  process  for  each  season.        A  list  of  insurance companies and States/UTs that  selected them for implementation of PMFBY during Rabi 201718 season is at Annexure-I.  All financial institutions including banks and Primary Agricultural Cooperative  Societies  (PACS),  which  are  extending  seasonal  operational  loans/Kisan  Credit Card loans for notified crop in notified areas are involved in implementation of the scheme.

(d): No,  Madam.    There  is  no  such  proposal  under  consideration  for  revising  the  funding pattern of PMFBY to 60 : 40 between Centre and States or to provide contingent fund to the States  for  implementation  of  PMFBY.    Not  only  is  the  scheme  Central  Sector  Scheme,  but, keeping in view the stake of the States in securing the interest of their farmers the Centre and States have an equal share in  the premium subsidy.

(e): Details  of  the  compensation  paid  by  various  insurance  companies  to  the  farmers  of various  States  during  last  three  years  are  given  in  Annexure-II.        Details  of  claims  for  the current year i.e. 2017-18 are not available.

(f): Yes,    Madam.      The  scheme  guidelines  provide  for  strict  adherence  to  seasonality discipline  including  general  cut-off  date  for  enrolment  for  each  season  and  yet  give  enough scope to the States to modify the cut-off dates for enrolment at the time of bidding/notification keeping in view the need for climatic adaptation and their respective crop calendar.     Besides, this  scheme  alongwith  Restructured  Weather  Based  Crop  Insurance  Scheme  (RWBCIS) provides risk cover against numerous weather perils.

## ANNEXURE-I

## List of insurance  companies and States/UTs that  selected them for implementation of PMFBY

during Rabi 2017-18 season

| INSURANCE COMPANIES                | INSURANCE COMPANIES                            | STATES/UNION TERRITORIES                                                                                                                      |
|------------------------------------|------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|
| PUBLIC SECTOR INSURANCE COMPANIES  | PUBLIC SECTOR INSURANCE COMPANIES              | PUBLIC SECTOR INSURANCE COMPANIES                                                                                                             |
| 1                                  | AGRICULTURE INSURANCE COMPANY OF INDIA LTD.    | Andhra Pradesh, Assam, Bihar, Chhattisgarh, Himachal Pradesh, Kerala, Madhya Pradesh, Odisha, Rajasthan, Tamil Nadu, Uttarakhand, West Bengal |
| 2                                  | NEW INDIA ASSURANCE COMPANY LTD.               | Tamil Nadu, Uttar Pradesh,                                                                                                                    |
| 3                                  | NATIONAL INSURANCE COMPANY LTD.                | Andhra Pradesh, Maharashtra, Odisha,                                                                                                          |
| 4                                  | ORIENTAL INSURANCE COMPANY LTD.                | Assam, Jammu & Kashmir, Jharkhand, Maharashtra,                                                                                               |
| 5                                  | UNITED INDIA INSURANCE COMPANY LTD.            | Bihar, Odisha, Rajasthan, Telangana,                                                                                                          |
| PRIVATE SECTOR INSURANCE COMPANIES | PRIVATE SECTOR INSURANCE COMPANIES             | PRIVATE SECTOR INSURANCE COMPANIES                                                                                                            |
| 1                                  | BAJAJ ALLIANZ GENERAL INSURANCE COMPANY LTD.   | Chhattisgarh, Haryana, Maharashtra, Rajasthan, Telangana, Uttar Pradesh,                                                                      |
| 2                                  | BHARTI AXA GENERAL INSURANCE COMPANY LTD.      | Bihar,                                                                                                                                        |
| 3                                  | CHOLAMANDALAM MSGENERAL INSURANCE COMPANY LTD. | Madhya Pradesh,                                                                                                                               |
| 4                                  | FUTURE GENERALI INSURANCE COMPANY LTD.         | -                                                                                                                                             |
| 5                                  | HDFC ERGO GENERAL INSURANCE COMPANY LTD.       | Himachal Pradesh, Madhya Pradesh, Maharashtra, Odisha,                                                                                        |
| 6                                  | ICICI LOMBARD GENERAL INSURANCE CO. LTD.       | Haryana, Jammu & Kashmir, Madhya Pradesh, Tamil Nadu, Telangana,                                                                              |
| 7                                  | IFFCO-TOKIO GENERAL INSURANCE COMPANY LTD.     | Andhra Pradesh, Gujarat, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Sikkim,                                                    |
| 8                                  | RELIANCE GENERAL INSURANCE COMPANY LIMITED     | Himachal Pradesh, Jammu & Kashmir, Uttar Pradesh, West Bengal                                                                                 |
| 9                                  | SBI GENERAL INSURANCE COMPANY LTD.             | Rajasthan, Uttar Pradesh,                                                                                                                     |
| 10                                 | SHRIRAM GENERAL INSURANCE COMPANY LTD.         | -                                                                                                                                             |
| 11                                 | TATA AIG GENERAL INSURANCE COMPANY LTD.        | Uttar Pradesh,                                                                                                                                |
| 12                                 | UNIVERSAL SOMPO GENERAL INSURANCE COMPANY LTD. | Uttar Pradesh,                                                                                                                                |
| 13                                 | ROYAL SUNDARAM GENERAL INSURANCE COMPANY LTD.  | Assam, Tripura,                                                                                                                               |

## Annexure-II

| State wise details of Total Claims under various Crop Insurance Schemes for last 3 years   | State wise details of Total Claims under various Crop Insurance Schemes for last 3 years   | State wise details of Total Claims under various Crop Insurance Schemes for last 3 years   | State wise details of Total Claims under various Crop Insurance Schemes for last 3 years   | State wise details of Total Claims under various Crop Insurance Schemes for last 3 years   |
|--------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|
| Sl No.                                                                                     | States                                                                                     | 2014-15                                                                                    | 2015-16                                                                                    | 2016-17                                                                                    |
| Sl No.                                                                                     | States                                                                                     | Paid Claims Paid Claims Paid (Rs. In lakhs)                                                | Paid Claims Paid Claims Paid (Rs. In lakhs)                                                | Paid Claims Paid Claims Paid (Rs. In lakhs)                                                |
| 1                                                                                          | Andaman & Nicobar                                                                          | 5.86                                                                                       | 1.19                                                                                       | 14.56                                                                                      |
| 2                                                                                          | Andhra Pradesh                                                                             | 7854.15                                                                                    | 33114.64                                                                                   | 81524.86                                                                                   |
| 3                                                                                          | Assam                                                                                      | 1340.25                                                                                    | 552.18                                                                                     | 501.68                                                                                     |
| 4                                                                                          | Bihar                                                                                      | 112472.86                                                                                  | 97332.12                                                                                   | 0.00                                                                                       |
| 5                                                                                          | Chhatisgarh                                                                                | 18502.44                                                                                   | 69863.15                                                                                   | 15562.62                                                                                   |
| 6                                                                                          | Goa                                                                                        | 0.00                                                                                       | 14.49                                                                                      | 2.68                                                                                       |
| 7                                                                                          | Gujarat                                                                                    | 50424.15                                                                                   | 179612.54                                                                                  | 100247.70                                                                                  |
| 8                                                                                          | Haryana                                                                                    | 0.79                                                                                       | 0.00                                                                                       | 28478.10                                                                                   |
| 9                                                                                          | Himachal Pradesh                                                                           | 3293.78                                                                                    | 3718.86                                                                                    | 3280.00                                                                                    |
| 10                                                                                         | Jharkhand                                                                                  | 2912.52                                                                                    | 22572.88                                                                                   | 2027.72                                                                                    |
| 11                                                                                         | Karnataka                                                                                  | 22263.69                                                                                   | 87881.27                                                                                   | 101333.71                                                                                  |
| 12                                                                                         | Kerala                                                                                     | 719.96                                                                                     | 1411.45                                                                                    | 1659.08                                                                                    |
| 13                                                                                         | Madhya Pradesh                                                                             | 74150.64                                                                                   | 480816.31                                                                                  | 185934.90                                                                                  |
| 14                                                                                         | Maharashtra                                                                                | 222821.76                                                                                  | 552689.34                                                                                  | 229564.59                                                                                  |
| 15                                                                                         | Manipur                                                                                    | 185.13                                                                                     | 269.70                                                                                     | 127.24                                                                                     |
| 16                                                                                         | Meghalaya                                                                                  | 16.28                                                                                      | 0.00                                                                                       | 0.00                                                                                       |
| 17                                                                                         | Orissa                                                                                     | 26331.23                                                                                   | 178264.07                                                                                  | 42983.35                                                                                   |
| 18                                                                                         | Puducherry                                                                                 | 1.76                                                                                       | 0.00                                                                                       | 733.61                                                                                     |
| 19                                                                                         | Rajasthan                                                                                  | 119085.68                                                                                  | 178713.37                                                                                  | 153445.37                                                                                  |
| 20                                                                                         | Sikkim                                                                                     | 0.00                                                                                       | 0.00                                                                                       | 1.38                                                                                       |
| 21                                                                                         | Tamil Nadu                                                                                 | 3599.58                                                                                    | 52109.42                                                                                   | 272482.49                                                                                  |
| 22                                                                                         | Telengana                                                                                  | 16987.17                                                                                   | 35382.78                                                                                   | 15855.57                                                                                   |
| 23                                                                                         | Tripura                                                                                    | 0.00                                                                                       | 0.24                                                                                       | 11.34                                                                                      |
| 24                                                                                         | Uttar Pradesh                                                                              | 78079.99                                                                                   | 144356.97                                                                                  | 53199.08                                                                                   |
| 25                                                                                         | Uttarakhand                                                                                | 4164.41                                                                                    | 1800.73                                                                                    | 2746.75                                                                                    |
| 26                                                                                         | West Bengal                                                                                | 17836.36                                                                                   | 35770.24                                                                                   | 3179.81                                                                                    |
| 27                                                                                         | Grand Total                                                                                | 783050.45                                                                                  | 2156247.95                                                                                 | 1294898.26                                                                                 |

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