Lok Sabha Question No. 1294 (UNSTARRED), answered on 2018-12-18
Subject: Challenges in Farm Insurance
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: KRUPAL BALAJI TUMANE

O.I.H

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

## LOK  SABHA UNSTARRED QUESTION NO.1294

TO BE ANSWERED ON THE 18 TH  DECEMBER, 2018

## CHALLENGES  IN  FARM  INSURANCE

1294.     SHRI  KRUPAL  BALAJI TUMANE:

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

- (a) whether the Government is aware of  the  fact  that  farmers  are  not  being provided the receipts of crop insurance by their  respective  banks/companies/ employers while doing crop insurance;
- (b) if so, whether the Government has conducted any enquiry in this regard;
- (c) if so, the details thereof;
- (d) if not, the reasons therefor;
- (e) the  reasons  for  not  providing receipts  by  the  banks/companies/ employers despite issuing crop insurance to farmers;
- (f) the    instruction    issued   by   the  Government  to  banks/companies/ employers in this regard; and
- (g) whether  the  Government  has conducted any review in this regard and 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 (g): Crop Insurance Schemes were earlier implemented on area approach basis and major coverage under these schemes was mandatory enrolment of loanee farmers. Consolidated  declarations  containing  name  of  crop,  number  of  farmers  insured  and  premium collected,  without  any  detail  of  individual  farmer,  were  sent  by  the  nodal  offices  of  banks  to insurance companies for enrolment.  As such, receipt to individual farmers was not provided by the insurance companies.

However, under Pradhan Mantri Fasal Bima Yojana (PMFBY), nodal bank system has been  withdrawn  and  all  bank  branches  directly  submit  the  individual  farmer-wise  data  on National    Crop   Insurance   Portal (NCIP)   from Kharif 2017.  Following this change, financial Contd…2/-

institutions and insurance companies were instructed to provide acknowledgement receipt to all insured  farmers.  Now,  acknowledgement  receipts  containing  details  of  crop,  premium,  area insured, sum insured, details of insurance company, etc., are being provided to all the Banks through NCIP for distribution to all the loanee farmers.

Further,  from  Kharif  2017,  provision  has  been  made  to  enable  non-loanee  farmers  to enroll  directly  on  the  portal  or  through  Common  Service  Centers  (CSC)  and  to  receive  the acknowledgement  receipt  immediately  on  enrolment.    Further,  non-loanee  farmers  enrolling directly  with  insurance  companies  or  their  intermediaries,  get  the  receipts  immediately  from them.  The acknowledgement receipt contains all the information relating to insurance like crop, premium, area insured, sum insured, details of insurance company, etc.

The Government has reviewed the matter from time to time for improving the system. Towards  this  end,  in  addition,  SMSs  have  been  issued  to  insured  farmers  from  Kharif-2017 onwards on receipt of their data on portal from banks.

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