Lok Sabha Question No. 235 (UNSTARRED), answered on 2019-02-05
Subject: Functioning of PMFBY
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: B.V. NAYAK, S.P. MUDDAHANUMEGOWDA

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

## LOK  SABHA UNSTARRED QUESTION NO. 235

TO BE ANSWERED ON THE 5 TH  FEBRUARY, 2019

## FUNCTIONING OF PMFBY

235. SHRI B.V. NAIK:

SHRI S.P. MUDDAHANUME GOWDA:

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

- (a) whether farmers with large land holdings majorly opt for crop insurance under Pradhan Mantri Fasal Bima Yojana (PMFBY) and not the small land holders;
- (b) if so, the details thereof;
- (c) whether the attention of the Government has been drawn to the fact that settlement of farmers claims takes an unusually long time and financial institutions do not make a reasonable assessment of the damage to farm produce in the true spirit of PMFBY; and
- (d) if so, the remedial steps proposed to be taken by the Government in this regard?

## 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): More  than  83%  of  enrolled  farmers  under  Pradhan  Mantri  Fasal  Bima  Yojana (PMFBY) are small and marginal farmers.

Admissible claims under Pradhan Mantri Fasal Bima Yojana (PMFBY) are generally paid by the insurance companies within two months of completion of Crop Cutting Experiments/harvesting  period  subject  to  availability  of  yield  data  and  total  State  share  of premium subsidy from concerned State Government within time.  However, payment of claims in some State/areas get delayed due to reasons like delayed transmission of yield data, dispute raised by Insurance Companies on yield data, reconciliation of individual farmers data on portal by  bank  branches,  late  release  of  their  share  in  premium  subsidy  by  some  State  and  NEFT related issues, etc.

The  detailed  activity-wise  seasonality  discipline,  including  timelines  for  settlement  of claims by insurance companies within two months of crop harvest, subject to timely release of subsidy  and  yield  data  to  the  insurance  companies,  has  been  prescribed  in  Operational Guidelines of Pradhan Mantri Fasal Bima Yojana (PMFBY) to ensure timely payment of claims to insured farmers.

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With a view to ensure better transparency, accountability and timely payment of claims to the  farmers,  Government  has  comprehensively  revised  the  Operational  Guidelines  of  the scheme which have become effective from Rabi 2018-19.  The Revised Operational Guidelines, inter-alia,  envisage  activities-wise  seasonality  discipline  including  timelines  for  release  of subsidy by Government to insurance companies and settlement of claims eligible farmers by concerned insurance companies.  The following provisions, have also been made in the revised Operational Guidelines:

- (i) Provision of 12% interest rate per annum to be paid by the Insurance Company to farmers  for  delay  in  settlement  claims  beyond  10  days  of  prescribed  cut  of  date  for payment of claims.

(ii) State  Government  have  to  pay  12%  interest  rate  for  delay  in  release  of  State share  of  Subsidy  beyond  three  months  of  prescribed  cut  off  date/submission  of requisition by Insurance Companies.

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