Lok Sabha Question No. 4882 (UNSTARRED), answered on 2019-07-23
Subject: Status of PMFBY
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Jayadev Galla

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

## LOK  SABHA

UNSTARRED QUESTION NO. 4882 TO BE ANSWERED ON THE 23 RD  JULY, 2019

## STATUS OF PMFBY

## 4882.  SHRI  JAYADEV GALLA:

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

- (a) the  status  of  implementation  of  Pradhan  Mantri  Fasal  Bima  Yojana  (PMFBY) in  the country since the begining of its implementation, State-wise;
- (b) the details of farmers covered under PMFBY since its implementation, State-wise and kharif and rabi-season-wise;
- (c) whether  it  is  true  that  the  Ministry  is  planning  to  issue  a  new  set  of  guidelines  for PMFBY;
- (d) the extent to which the new set of guidelines would help improve implementation of the scheme; and
- (e) the reasons for enormous delay in settlement of claims by insurance companies and the steps proposed by the Government to bring down settlement time to an acceptable level?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

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

(a) & (b): With  a  view  to  provide  a  simple  and  affordable  crop  insurance  scheme  to  ensure comprehensive risk cover for crops against all non-preventable natural risks from pre-sowing to postharvest, and to provide adequate claim amount and timely settlement of claims, a yield based scheme namely Pradhan Mantri Fasal Bima Yojana (PMFBY), has been launched from Kharif 2016 by the Government.    The  schemes  are  optional  for  the  States  and  27  States/Union  Territories  have implemented the scheme in one or more seasons. State-wise and Kharif and Rabi season-wise details of farmers covered since inception of the scheme are given in annexure .

(c) & (d): The revisions/improvements in the crop insurance schemes is a continuous process and decisions  on  suggestions/representations  received  from  various  forums  are  taken  from  time  to  time after consultation with various stakeholders. 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 coverage under the scheme, the following provisions, which will facilitate higher enrolment and early settlement of claims, making the scheme even more farmer friendly, 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 of claims beyond 10 days of prescribed cutoff 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  cutoff  date/submission  of  requisition  by Insurance Companies.
- (iii) Increased time for change of crop name for insurance - upto 2 working days prior to cut-off date for enrolment instead of earlier provision of 1 month before cutoff 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.

(e): As per provisions of Pradhan Mantri Fasal Bima Yojana (PMFBY) admissible claims are  generally  paid  by  the  insurance  companies  within  two  months  of  completion  of  Crop Cutting  Experiments/harvesting  period  subject  to  availability  of  yield  data  by  the  State Government.  However, settlement of claims in some States get delayed due to reasons like delayed transmission of yield data;  late release of their share in premium subsidy by some States,  yield  related  disputes  between  insurance  companies  and  States,  non-receipt  of account details of some farmers for transfer of claims and NEFT related issues, etc.

To bring down the claim settlement time many steps in addition to regularly monitoring the implementation of PMFBY has been taken by the Government.    These steps include use of improved technology, revision of Operational Guidelines wherein provision has been made for timely release of State Govt. share in 3 installments and settlement of claims by insurance companies without waiting for final/3 rd installment by the States and advancement of 15 days in seasonality discipline for early settlement of claims. Penalty provisions for late settlement of claims by insurance companies and late release of funds by State Governments have also been stipulated under these guidelines

.

Annexure

| 2016-17 - PMFBY   | &RWBCIS - State Wise Season-Wise   | &RWBCIS - State Wise Season-Wise   | &RWBCIS - State Wise Season-Wise   | Details of Farmers Covered   | Details of Farmers Covered   | Details of Farmers Covered   |
|-------------------|------------------------------------|------------------------------------|------------------------------------|------------------------------|------------------------------|------------------------------|
| State/UT Name     | Kharif 2016 Loanee                 | Non Loanee                         | Total                              | Rabi Loanee                  | 2016-17 Non Loanee           | Total                        |
|                   | (Number in Lakhs)                  | (Number in Lakhs)                  | (Number in Lakhs)                  | (Number in Lakhs)            | (Number in Lakhs)            | (Number in Lakhs)            |
| A &NIslands       | -                                  | -                                  | -                                  | 0.00                         | -                            | 0.00                         |
| Andhra Pradesh    | 15.54                              | 0.65                               | 16.19                              | 0.85                         | 0.72                         | 1.57                         |
| Assam             | 0.52                               | 0.00                               | 0.52                               | 0.08                         | 0.00                         | 0.09                         |
| Bihar             | 14.63                              | 0.22                               | 14.85                              | 12.16                        | 0.13                         | 12.29                        |
| Chhattisgarh      | 12.51                              | 1.48                               | 13.99                              | 1.01                         | 0.49                         | 1.50                         |
| Goa               | 0.01                               | -                                  | 0.01                               | 0.00                         | -                            | 0.00                         |
| Gujarat           | 18.43                              | 0.04                               | 18.47                              | 1.33                         | 0.00                         | 1.33                         |
| Haryana           | 7.37                               | 0.02                               | 7.39                               | 5.96                         | 0.01                         | 5.97                         |
| Himachal Pradesh  | 1.32                               | 0.03                               | 1.35                               | 1.87                         | 0.58                         | 2.45                         |
| Jammu &Kashmir    | -                                  | -                                  | -                                  | -                            | -                            | -                            |
| Jharkhand         | 1.69                               | 6.59                               | 8.28                               | 0.31                         | 0.19                         | 0.51                         |
| Karnataka         | 10.94                              | 2.66                               | 13.60                              | 1.75                         | 12.08                        | 13.83                        |
| Kerala            | 0.24                               | 0.08                               | 0.32                               | 0.20                         | 0.26                         | 0.46                         |
| Madhya Pradesh    | 36.81                              | 3.98                               | 40.79                              | 30.00                        | 1.10                         | 31.10                        |
| Maharashtra       | 38.16                              | 71.89                              | 110.06                             | 3.04                         | 7.27                         | 10.31                        |
| Manipur           | 0.06                               | 0.02                               | 0.08                               | -                            | -                            | -                            |
| Meghalaya         | 0.00                               | -                                  | 0.00                               | 0.00                         | -                            | 0.00                         |
| Odisha            | 17.36                              | 0.31                               | 17.67                              | 0.52                         | 0.02                         | 0.54                         |
| Puducherry        | -                                  | -                                  | -                                  | 0.00                         | 0.08                         | 0.09                         |
| Rajasthan         | 62.43                              | 0.01                               | 62.43                              | 29.46                        | 0.00                         | 29.46                        |
| Sikkim            | -                                  | -                                  | -                                  | -                            | 0.01                         | 0.01                         |
| Tamil Nadu        | 0.16                               | 0.00                               | 0.16                               | 3.14                         | 10.99                        | 14.12                        |
| Telangana         | 6.53                               | 0.56                               | 7.09                               | 2.49                         | 0.15                         | 2.64                         |
| Tripura           | 0.01                               | 0.01                               | 0.02                               | 0.02                         | 0.07                         | 0.10                         |
| Uttar Pradesh     | 39.95                              | 0.04                               | 39.99                              | 32.70                        | 0.27                         | 32.97                        |
| Uttarakhand       | 1.62                               | 0.13                               | 1.75                               | 0.67                         | 0.20                         | 0.86                         |
| West Bengal       | 17.13                              | 13.40                              | 30.53                              | 10.75                        | 0.05                         | 10.80                        |
| GRAND TOTAL       | 303.42                             | 102.13                             | 405.55                             | 138.31                       | 34.67                        | 172.98                       |

| 2017-18 - PMFBY & RWBCIS - State Wise Season-Wise Details of Farmers Covered   | 2017-18 - PMFBY & RWBCIS - State Wise Season-Wise Details of Farmers Covered   | 2017-18 - PMFBY & RWBCIS - State Wise Season-Wise Details of Farmers Covered   | 2017-18 - PMFBY & RWBCIS - State Wise Season-Wise Details of Farmers Covered   | 2017-18 - PMFBY & RWBCIS - State Wise Season-Wise Details of Farmers Covered   | 2017-18 - PMFBY & RWBCIS - State Wise Season-Wise Details of Farmers Covered   | 2017-18 - PMFBY & RWBCIS - State Wise Season-Wise Details of Farmers Covered   |
|--------------------------------------------------------------------------------|--------------------------------------------------------------------------------|--------------------------------------------------------------------------------|--------------------------------------------------------------------------------|--------------------------------------------------------------------------------|--------------------------------------------------------------------------------|--------------------------------------------------------------------------------|
|                                                                                | Kharif 2017                                                                    | Kharif 2017                                                                    | Kharif 2017                                                                    | Rabi 2017-18                                                                   | Rabi 2017-18                                                                   | Rabi 2017-18                                                                   |
| State/UT Name                                                                  | Loanee                                                                         | Non Loanee                                                                     | Total                                                                          | Loanee                                                                         | Non Loanee                                                                     | Total                                                                          |
|                                                                                | (Number in Lakhs)                                                              | (Number in Lakhs)                                                              | (Number in Lakhs)                                                              | (Number in Lakhs)                                                              | (Number in Lakhs)                                                              | (Number in Lakhs)                                                              |
| A & N Islands                                                                  | -                                                                              | -                                                                              | -                                                                              | 0.00                                                                           | -                                                                              | 0.00                                                                           |
| Andhra Pradesh                                                                 | 15.29                                                                          | 0.71                                                                           | 16.00                                                                          | 1.24                                                                           | 1.02                                                                           | 2.26                                                                           |
| Assam                                                                          | 0.50                                                                           | 0.02                                                                           | 0.52                                                                           | 0.06                                                                           | 0.00                                                                           | 0.06                                                                           |
| Bihar                                                                          | 11.48                                                                          | 0.00                                                                           | 11.49                                                                          | 11.32                                                                          | 0.10                                                                           | 11.43                                                                          |
| Chhattisgarh                                                                   | 11.23                                                                          | 1.81                                                                           | 13.04                                                                          | 1.22                                                                           | 0.49                                                                           | 1.71                                                                           |
| Goa                                                                            | 0.01                                                                           | -                                                                              | 0.01                                                                           | 0.00                                                                           | -                                                                              | 0.00                                                                           |
| Gujarat                                                                        | 14.88                                                                          | 0.03                                                                           | 14.91                                                                          | 2.71                                                                           | 0.00                                                                           | 2.71                                                                           |
| Haryana                                                                        | 6.37                                                                           | 0.03                                                                           | 6.40                                                                           | 7.13                                                                           | 0.01                                                                           | 7.15                                                                           |
| Himachal Pradesh                                                               | 1.25                                                                           | 0.00                                                                           | 1.25                                                                           | 2.55                                                                           | 0.02                                                                           | 2.57                                                                           |
| Jammu & Kashmir                                                                | 0.80                                                                           | 0.06                                                                           | 0.86                                                                           | 0.66                                                                           | 0.00                                                                           | 0.67                                                                           |
| Jharkhand                                                                      | 1.15                                                                           | 10.29                                                                          | 11.43                                                                          | 0.21                                                                           | 0.28                                                                           | 0.49                                                                           |
| Karnataka                                                                      | 7.69                                                                           | 8.15                                                                           | 15.84                                                                          | 0.15                                                                           | 0.13                                                                           | 0.28                                                                           |
| Kerala                                                                         | 0.26                                                                           | 0.03                                                                           | 0.28                                                                           | 0.21                                                                           | 0.07                                                                           | 0.28                                                                           |
| Madhya Pradesh                                                                 | 34.39                                                                          | 1.47                                                                           | 35.86                                                                          | 34.26                                                                          | 1.28                                                                           | 35.54                                                                          |
| Maharashtra                                                                    | 19.47                                                                          | 68.24                                                                          | 87.71                                                                          | 2.16                                                                           | 12.18                                                                          | 14.34                                                                          |
| Manipur                                                                        | -                                                                              | -                                                                              | -                                                                              | 0.09                                                                           | 0.00                                                                           | 0.09                                                                           |
| Meghalaya                                                                      | 0.03                                                                           | -                                                                              | 0.03                                                                           | -                                                                              | -                                                                              | -                                                                              |
| Odisha                                                                         | 16.73                                                                          | 1.56                                                                           | 18.29                                                                          | 0.60                                                                           | 0.03                                                                           | 0.64                                                                           |
| Puducherry                                                                     | -                                                                              | -                                                                              | -                                                                              | -                                                                              | -                                                                              | -                                                                              |
| Rajasthan                                                                      | 54.68                                                                          | 0.00                                                                           | 54.68                                                                          | 31.30                                                                          | 0.01                                                                           | 31.31                                                                          |
| Sikkim                                                                         | 0.00                                                                           | 0.01                                                                           | 0.01                                                                           | -                                                                              | 0.01                                                                           | 0.01                                                                           |
| Tamil Nadu                                                                     | 0.76                                                                           | 0.71                                                                           | 1.46                                                                           | 3.49                                                                           | 9.96                                                                           | 13.46                                                                          |
| Telangana                                                                      | 7.89                                                                           | 0.33                                                                           | 8.22                                                                           | 1.72                                                                           | 0.20                                                                           | 1.92                                                                           |
| Tripura                                                                        | 0.02                                                                           | 0.00                                                                           | 0.02                                                                           | 0.04                                                                           | 0.05                                                                           | 0.09                                                                           |
| Uttar Pradesh                                                                  | 24.91                                                                          | 0.09                                                                           | 25.00                                                                          | 27.64                                                                          | 0.65                                                                           | 28.29                                                                          |
| Uttarakhand                                                                    | 1.20                                                                           | 0.22                                                                           | 1.42                                                                           | 0.56                                                                           | 0.25                                                                           | 0.80                                                                           |
| West Bengal                                                                    | 11.12                                                                          | 13.38                                                                          | 24.50                                                                          | 9.27                                                                           | 6.83                                                                           | 16.10                                                                          |
| GRAND TOTAL                                                                    | 242.08                                                                         | 107.13                                                                         | 349.21                                                                         | 138.60                                                                         | 33.57                                                                          | 172.17                                                                         |

Annexure...Contd...

| 2018-19 - PMFBY &RWBCIS - State Wise Season-Wise Details of Farmers Covered   | 2018-19 - PMFBY &RWBCIS - State Wise Season-Wise Details of Farmers Covered   | 2018-19 - PMFBY &RWBCIS - State Wise Season-Wise Details of Farmers Covered   | 2018-19 - PMFBY &RWBCIS - State Wise Season-Wise Details of Farmers Covered   | 2018-19 - PMFBY &RWBCIS - State Wise Season-Wise Details of Farmers Covered   | 2018-19 - PMFBY &RWBCIS - State Wise Season-Wise Details of Farmers Covered   | 2018-19 - PMFBY &RWBCIS - State Wise Season-Wise Details of Farmers Covered   |
|-------------------------------------------------------------------------------|-------------------------------------------------------------------------------|-------------------------------------------------------------------------------|-------------------------------------------------------------------------------|-------------------------------------------------------------------------------|-------------------------------------------------------------------------------|-------------------------------------------------------------------------------|
| State/UT Name                                                                 | Kharif 2018                                                                   | Kharif 2018                                                                   | Kharif 2018                                                                   | Rabi 2018-19                                                                  | Rabi 2018-19                                                                  | Rabi 2018-19                                                                  |
|                                                                               | Loanee                                                                        | Non Loanee                                                                    | Total                                                                         | Loanee                                                                        | Non Loanee                                                                    | Total                                                                         |
|                                                                               | (Number in Lakhs)                                                             | (Number in Lakhs)                                                             | (Number in Lakhs)                                                             | (Number in Lakhs)                                                             | (Number in Lakhs)                                                             | (Number in Lakhs)                                                             |
| A &NIslands                                                                   | 0.00                                                                          | 0.00                                                                          | 0.00                                                                          | 0.00                                                                          | -                                                                             | 0.00                                                                          |
| Andhra Pradesh                                                                | 15.73                                                                         | 0.77                                                                          | 16.50                                                                         | 1.23                                                                          | 0.06                                                                          | 1.28                                                                          |
| Assam                                                                         | 0.19                                                                          | 0.01                                                                          | 0.20                                                                          | 0.12                                                                          | 0.36                                                                          | 0.48                                                                          |
| Bihar                                                                         | -                                                                             | -                                                                             | -                                                                             | -                                                                             | -                                                                             | -                                                                             |
| Chhattisgarh                                                                  | 12.01                                                                         | 1.72                                                                          | 13.72                                                                         | 1.42                                                                          | 0.57                                                                          | 1.99                                                                          |
| Goa                                                                           | 0.00                                                                          | 0.00                                                                          | 0.00                                                                          | 0.00                                                                          | -                                                                             | 0.00                                                                          |
| Gujarat                                                                       | 18.45                                                                         | 0.07                                                                          | 18.52                                                                         | 3.12                                                                          | 0.01                                                                          | 3.13                                                                          |
| Haryana                                                                       | 7.04                                                                          | 0.57                                                                          | 7.61                                                                          | 7.29                                                                          | 0.04                                                                          | 7.32                                                                          |
| Himachal Pradesh                                                              | 0.94                                                                          | 0.08                                                                          | 1.02                                                                          | 1.67                                                                          | 0.01                                                                          | 1.68                                                                          |
| Jammu &Kashmir                                                                | 0.85                                                                          | 0.02                                                                          | 0.87                                                                          | 0.69                                                                          | 0.00                                                                          | 0.70                                                                          |
| Jharkhand                                                                     | 1.47                                                                          | 10.77                                                                         | 12.24                                                                         | 0.57                                                                          | 0.13                                                                          | 0.71                                                                          |
| Karnataka                                                                     | 7.38                                                                          | 7.16                                                                          | 14.54                                                                         | 1.53                                                                          | 4.03                                                                          | 5.57                                                                          |
| Kerala                                                                        | 0.25                                                                          | 0.01                                                                          | 0.26                                                                          | 0.23                                                                          | 0.08                                                                          | 0.31                                                                          |
| Madhya Pradesh                                                                | 34.33                                                                         | 1.44                                                                          | 35.77                                                                         | 33.00                                                                         | 2.65                                                                          | 35.65                                                                         |
| Maharashtra                                                                   | 14.37                                                                         | 82.22                                                                         | 96.59                                                                         | 3.18                                                                          | 41.93                                                                         | 45.10                                                                         |
| Manipur                                                                       | 0.01                                                                          | 0.00                                                                          | 0.01                                                                          | -                                                                             | -                                                                             | -                                                                             |
| Meghalaya                                                                     | 0.01                                                                          | -                                                                             | 0.01                                                                          | -                                                                             | -                                                                             | -                                                                             |
| Odisha                                                                        | 17.20                                                                         | 2.76                                                                          | 19.96                                                                         | 0.68                                                                          | 0.13                                                                          | 0.81                                                                          |
| Puducherry                                                                    | -                                                                             | 0.00                                                                          | 0.00                                                                          | 0.01                                                                          | 0.09                                                                          | 0.10                                                                          |
| Rajasthan                                                                     | 39.97                                                                         | 0.20                                                                          | 40.17                                                                         | 26.16                                                                         | 0.01                                                                          | 26.17                                                                         |
| Sikkim                                                                        | 0.00                                                                          | 0.00                                                                          | 0.00                                                                          | -                                                                             | -                                                                             | -                                                                             |
| Tamil Nadu                                                                    | 0.93                                                                          | 1.31                                                                          | 2.24                                                                          | 8.55                                                                          | 14.58                                                                         | 23.12                                                                         |
| Telangana                                                                     | 5.15                                                                          | 0.62                                                                          | 5.76                                                                          | 1.66                                                                          | 0.34                                                                          | 2.00                                                                          |
| Tripura                                                                       | -                                                                             | -                                                                             | -                                                                             | 0.00                                                                          | 0.02                                                                          | 0.02                                                                          |
| Uttar Pradesh                                                                 | 30.65                                                                         | 1.48                                                                          | 32.12                                                                         | 28.33                                                                         | 0.68                                                                          | 29.01                                                                         |
| Uttarakhand                                                                   | 1.13                                                                          | 0.19                                                                          | 1.32                                                                          | 0.48                                                                          | 0.12                                                                          | 0.60                                                                          |
| West Bengal                                                                   | 16.09                                                                         | 12.72                                                                         | 28.81                                                                         | 13.87                                                                         | 13.37                                                                         | 27.24                                                                         |
| GRAND TOTAL                                                                   | 224.13                                                                        | 124.13                                                                        | 348.27                                                                        | 133.78                                                                        | 79.22                                                                         | 213.00                                                                        |

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