Lok Sabha Question No. 1483 (UNSTARRED), answered on 2017-07-25
Subject: Pradhan Mantri Fasal Bima Yojana
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: GOPAL CHINAYYA SHETTY

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

## LOK  SABHA UNSTARRED QUESTION NO.1483

TO BE ANSWERED ON THE 25 TH  JULY, 2017

## PRADHAN MANTRI FASAL BIMA YOJANA

1483.      SHRI GOPAL SHETTY:

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

- (a) whether major changes have been made in the schemes 'Pradhan Mantri Fasal Bima Yojana' by removing the discrepancies in the old crop insurance schemes so that the farmers get maximum benefits;
- (b) if so, the details thereof;
- (c) whether the premium has been reduced to minimum and the payment limit related to insurance has also been removed under the Pradhan Mantri Fasal Bima Yojana; and
- (d) 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.    Pradhan  Mantri  Fasal  Bima  Yojana  (PMFBY)  was  launched  from Kharif 2016 season after a comprehensive review of the erstwhile crop insurance schemes in consultation with all stakeholders.   Premium to be paid by the farmers has been reduced to maximum of 2% for Kharif crops, 1.5% for Rabi Crop and 5% for annual commercial/horticultural crops.  The balance of actuarial premium is shared by the Central and State Governments on 50 : 50 basis.  Several other measures like  removal of cap on premium which  had  earlier  led  to  reduction  in  sum  insured  vis-à-vis  claims,  if  any;    equating  the  sum insured  with  Scale  of  Finance  for  maximum  risk  coverage  of  farmers  etc.  have  also  been incorporated. Salient features of the scheme are annexed.

## Salient Features of PMFBY

- i) Provide comprehensive insurance coverage against crop loss on account of non-preventable natural risks,  thus  helping  in  stabilising  the  income  of  the  farmers  and  encourage  them  for  adoption  of innovative practices.
2. ii) Increase the risk coverage of Crop cycle - pre-sowing to post-harvest losses.
3. iii) Area approach for settlement of claims for widespread damage. Notified Insurance unit has been reduced to Village/Village Panchayat  for major crops
4. iv) Uniform maximum premium of only 2%, 1.5% and 5% to be paid by farmers for all Kharif crops, Rabi Crops and Commercial/ horticultural crops respectively.
- v) The difference between premium and the rate of Insurance charges payable by farmers is provided as subsidy and shared equally by the Centre and State.
6. vi) Uniform seasonality discipline & Sum Insured  for both loanee & non-loanee farmers
7. vii) Removal of the provision of capping on premium and reduction of sum insured to facilitate farmers to get claim against full sum insured without any reduction.
8. viii) Inundation has been incorporated as a localized calamity in addition to hailstorm and landslide  for individual farm level assessment.
9. ix) Provision  of  individual  farm  level  assessment  for  Post  harvest  losses  against  the  cyclonic  & unseasonal rains for the crops kept in the field for drying upto a period of 14 days, throughout the country.
- x) Provision of claims upto 25% of sum insured for prevented sowing.
11. xi) 'On-Account payment' upto 25% of sum insured for mid season adversity, if the crop damage is reported  more  than  50%  in  the  insurance  unit.   Remaining  claims  based  on  Crop  Cutting Experiments (CCEs) data.
12. xii) Use of Remote Sensing Technology, Smartphones & Drones for quick estimation of crop losses to ensure early settlement of claims.
13. xiii) Crop  Insurance  Portal  has  been  developed  for  ensuring  better  administration,  co-ordination, transparency, dissemination of information and delivery of services including  crediting the claim amount electronically to the individual farmer's Bank Account
14. xiv) Focused  attention  on  increasing  awareness  about  the  schemes  among  all  stakeholders  and appropriate provisioning of resources for the same.
15. xv) Premium rates under Weather Based Crop Insurance Scheme (WBCIS) have also been reduced and brought  at  par  with  new  scheme.  Further,  capping  on  Actuarial  premium  and  reduction  in  sum insured has been removed in this scheme also.
16. xvi) In  addition,  a  Unified Package Insurance Scheme (UPIS) has also been approved for implementation on pilot basis in 45 districts of the country from Kharif 2016 season to cover the other assets/activities like machinery, life, accident, house and student-safety for farmers alongwith their notified crops (under PMFBY/ Weather Based Crop Insurance Scheme - WBCIS).

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## Annexure