Lok Sabha Question No. 4549 (UNSTARRED), answered on 2021-03-23
Subject: Empanelment of Insurance Companies under PMFBY
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Balubhau (Alias Suresh Narayan) Dhanorkar, Kani K. Navas

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

## LOK SABHA UNSTARRED QUESTION NO. 4549

TO BE ANSWERED ON THE 23 RD  MARCH, 2021

## EMPANELMENT OF INSURANCE COMPANIES UNDER PMFBY

4549. SHRI BALUBHAU ALIAS SURESH NARAYAN DHANORKAR: SHRI K. NAVASKANI:

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

- (a) the number  of public  and private insurance companies  empanelled  for the implementation of Pradhan Mantri Fasal Bima Yojana (PMFBY) in 2020-21;

(b) whether major private insurance players have not bid for PMFBY during 2020-21;

(c) if so, the details and reasons thereof; and

- (d) the steps taken by the Government to ensure that premiums, assessments of loss and payment of compensation under PMFBY are paid to all farmers?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी (SHRI NARENDRA SINGH TOMAR)

(a) to (d) :    18 general insurance companies have been empanelled for implementation of Pradhan Mantri Fasal Bima Yojana (PMFBY) during 2020-21. One new company has also been empanelled during the year 2020-21.

Further,  as  per  provisions  of  the  Operational  Guidelines  of  PMFBY,  each insurance company is required to compulsorily bid for any 4 North Eastern States, 2 hilly States and 2 Union Territories so that the scheme can be implemented in low penetrated States/UTs.

All  the  empanelled  companies  have  not  participated  in  bidding  process  in each State/each season.   In Kharif 2020 season only 9 insurance companies have bid for  implementation  of  PMFBY  during  2020-21  due  to  financial  considerations  and hardening of reinsurance market.

Non-participation in  bidding  process  by  insurance  companies  is  one  of  the key  performance  indicators  and  specific  negative  points  have  been  allocated  for  nonperformance  of  this  provision  at  the  time  of  monitoring/evaluation  of  empanelled insurance companies with imposition of monetary penalty.

However,  in  reply  to  the  show-cause  notices  issued  by  the  Government, most  of  these  companies  have  assured  to  continue  participation  in  bidding  in  coming years. Even if any empanelled insurance company discontinues the implementation of  PMFBY,  they  are  bound  to  assess the  crop  losses  and  settle/pay  the  admissible claims  of  previous  seasons to  the  insured  farmers  who  have  paid  primium  as  per  the rules  and  regulations  of  the  Insurance  Regulatory  Development  Authority  of  India (IRDAI). Detailed provisions regarding settlement of claims of insured farmers by the insurance companies have also been made in the Operational Guidelines of PMFBY. The Government monitors the scheme implementation including settlement of claims by insurance  companies  regularly  through  weekly  video  conferences  with  stakeholders including insurance companies, banks and State Governments.  Government has also issued  instructions  from  time  to  time  to  the  financial  institutions  to  remit  the  premium and  upload  the  famers'  data  correctly  and  timely  on  NCIP.    Stakeholders  are  also reminded from time to time to ensure adherence to the seasonality discipline and other requirements indicated in the Operational Guidelines of the scheme so that admissible claims of farmers can be paid well in time.

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