Lok Sabha Question No. 3770 (UNSTARRED), answered on 2019-07-16
Subject: Modification of Crop Insurance Scheme
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: K. Subbarayan

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

## LOK  SABHA UNSTARRED QUESTION NO.3770

TO BE ANSWERED ON THE 16 TH   JULY, 2019

## MODIFICATION OF CROP INSURANCE SCHEME

3770.    SHRI SUBBARAYAN K.:

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

- (a) whether   the   Government  is considering  any  proposal  to  change  or modify the present crops insurance scheme for  the  benefit  of  more  farmers  in  the country as there is a lot of complaints with regard to the criteria for eligibility to avail the  benefits  under  the  present scheme; and
- (b) if so, the details thereof?

## ANSWER

## MINISTER  OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी (SHRI NARENDRA SINGH TOMAR)

(a) & (b): The  revisions/improvements  in  the  crop  insurance  schemes  is  a  continuous process  and  decisions  on  suggstions/representations  are  taken  from  time  to  time  after consultation  with  various  stakeholders.      On  the  basis  of  experience  of  implementation  of Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS) during past 2 years certain deficiencies like late/non-settlment of claims by insurance  companies, late  release  of  their  share  in  premium  subsidy  by  State  Governments, delay  in  submission  of  Crop  Cutting  Experiments(CCEs)  based  yield  data  to  insurance companies by State Governments, demand for coverage of more risks in localized calamities/post harevest loss, very short window/ time to inform losses for individual assessment, non-availability of structured grievance redressal system, non availability of cover for perennial/horticultural crops etc.  under yield index based scheme were noticed.

With a view to ensure better transparency, accountability,  timely payment of claims to the farmers and to make the scheme more farmer friendly, Government has comprehensively revised the Operational Guidelines of the Pradhan Mantri Fasal Bima Yojana (PMFBY) which have become effective from Rabi 2018-19.   To ensure optimal benefits under the scheme, the following provisions, have, inter-alia,  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  off  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.
- (iii) Increased time for change of crop name for insurance - upto 2 working days prior to cutoff date for enrolment instead of earlier provision of 1 month before cut off date.
- (iv) Rationalization of methodology for calculation of Threshold Yield (TY) to calculate claims - Moving average of best 5 out of 7 years to be taken for calculation.
- (v) Increase  in  risk  coverage  by  inclusion  of  risks  of  cloud  burst  and  natural  fire  under localized calamities and hailstorm under post-harvest losses.
- (vi) Time for intimation of loss due to localized calamities and post-harvest losses has been increased from 48 hours to 72 hours.
- (vii) Stratified grievance redressal mechanism  viz.  District Level Grievance Redressal Committee (DGRC), State Level Grievance Redressal Committee (SGRC).
- (viii) Detailed  plan  for  publicity  and  awareness  -  0.5%  of  Gross  premium  per  company  per season earmarked for the purpose.
- (ix) Detailed Standard Operating Procedures (SOPs) for settlement of claims under localized calamities,  post  harvest  losses,  mid-season  adversity  and  prevented  sowing  and redressal of disputes regarding yield data including add on features.
- (x) Inclusion of perennial crops and add on coverage for damage by wild animals on pilot basis.

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