Lok Sabha Question No. 609 (UNSTARRED), answered on 2019-06-25
Subject: Challenges in Crop Insurance
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Rahul Kaswan

O.I.H.

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

## LOK  SABHA UNSTARRED QUESTION NO.609

TO BE ANSWERED ON THE  25 TH  JUNE, 2019

## CHALLENGES IN CROP INSURANCE

## 609. SHRI RAHUL KASWAN:

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

- (a) whether the banks/companies/employees are not giving receipt/insurance policy to the farmers while providing them crop insurance cover due to which the farmers are unable to complete their process of making claim well in time;
- (b) if so, the details thereof;
- (c) whether  the  Government  has  conducted  any  probe  in  this  regard,  if  so,  the  details thereof and if not, the reasons therefor;
- (d) the details of the directions issued by the Government to the said banks/ companies/ employees in this regard; and
- (e) whether the Government has made any review in this regard, if so, the details thereof?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

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

- (a) to (e):       Crop Insurance Schemes were earlier implemented on area approach basis and major  coverage  (over  95%)  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/banks.

However, under Pradhan Mantri Fasal Bima Yojana (PMFBY), nodal bank system has been  withdrawn  and  all  bank  branches  directly  submit  the  individual  farmer-wise  data  on National  Crop  Insurance  Portal  (NCIP)  from  Kharif  2017.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 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  provided  to  all  the  Banks through NCIP for distribution to all the loanee farmers.   In addition, Post Offices have also been  engaged  to  distribute  the  acknowledgement  receipt  containing  aforesaid  details  with brief of the scheme to insured loanee farmers from Kharif 2018 season onwards.

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.

Further, the Government has reviewed the matter from time to time for improving the system.  Towards this end, in addition, SMSs have also been issued to insured farmers from Kharif-2017 onwards on receipt of their data on portal from banks.    An Android based Crop Insurance App has also been developed,   through which farmers can track the status of their application, claims and also the crop damage report etc.

## **********