Lok Sabha Question No. 353 (UNSTARRED), answered on 2019-11-19
Subject: Details of PMFBY
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Sujay Radhakrishna Vikhepatil, Sambhajirao Mane Dhairyasheel, Shrikant Eknath Shinde

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

## LOK  SABHA UNSTARRED QUESTION NO.353

TO BE ANSWERED ON THE 19 TH  NOVEMBER, 2019

## DETAILS OF PMFBY

353.   DR. SUJAY RADHAKRISHNA VIKHE PATIL: SHRI DHAIRYASHEEL SAMBHAJIRAO MANE: DR. SHRIKANT EKNATH SHINDE:

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

- (a) the  details  of  Pradhan  Mantri  Fasal  Bima  Yojana  (PMFBY)  along  with  the  details  of insurer companies and the system of approval for insurance of agricultural yield;
- (b) the details of the premium collected since the launch of PMFBY till date, State/ UT-wise and date-wise;
- (c) the details of insurance amount given away, State/UT-wise and date-wise;
- (d) whether insurers have returned the premium collected from farmers in Maharashtra, if so, the details thereof and the reasons therefor; and
- (e) whether the Government has taken any steps to resolve this problem, if so, the details thereof, if not, the reasons therefor?

## ANSWER

MINISTER  OF AGRICULTURE AND FARMERS WELFARE

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

- (a): 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 post-harvest,  and  to  provide  adequate  claim  amount  and  timely  settlement  of  claims,  yield based scheme namely Pradhan Mantri Fasal Bima Yojana (PMFBY) and weather index based Restructured  Weather  Based  Crop  Insurnace  Scheme  (RWBCIS)  have  been  launched  from Kharif 2016 by the Government. Salient features of PMFBY are at Annexure-I .

At present, total 18 companies, which includes all the 5 Public Sector General Insurance Companies and 13 Private Sector General Insurance Companies, have been empanelled for implementation  of  Pradhan  Mantri  Fasal  Bima  Yojana  (PMFBY)  in  the  country.      Names  of empanelled compnies are given in following table :

| PUBLIC SECTOR INSURANCE COMPANIES   | PUBLIC SECTOR INSURANCE COMPANIES               |
|-------------------------------------|-------------------------------------------------|
| 1.                                  | Agriculture Insurance Company of India Ltd.     |
| 2.                                  | National Insurance Company Ltd.                 |
| 3.                                  | New India Assurance Company Ltd.                |
| 4.                                  | Oriental Insurance Company Ltd.                 |
| 5.                                  | United India Insurance Company Ltd.             |
| PRIVATE SECTOR INSRUANCE COMPANIES  | PRIVATE SECTOR INSRUANCE COMPANIES              |
| 6.                                  | Bajaj Allianz General Insurance Company Ltd.    |
| 7.                                  | Bharti AXA General Insurance Company Ltd.       |
| 8.                                  | Cholamandalam MS General Insurance Company Ltd. |
| 9.                                  | Future Generali India Insurance Company Ltd.    |
| 10.                                 | HDFC-ERGO General Insurance Company Ltd.        |
| 11.                                 | ICICI-Lombard General Insurance Company Ltd.    |
| 12.                                 | IFFCO-Tokio General Insurance Company Ltd.      |
| 13.                                 | Reliance General Insurance Company Ltd.         |
| 14.                                 | SBI General Insurance Company Ltd.              |
| 15.                                 | Shriram General Insurance Company Ltd.          |
| 16.                                 | Tata-AIG General Insurance Company Ltd.         |
| 17.                                 | Universal Sompo General Insurance Company Ltd.  |
| 18.                                 | Royal Sundaram General Insurance company Ltd.   |

As  per  scheme  provisions,  farmers  are  indemnified  by  the  insurance  company  to  the extent/percentage of crop losses against the defined Threshold Yield multiplied by sum insured as decided by the State Government.   Claim amount for wide spread calamites are calculated based  on  the  yield  data  arrived  from  requisite  number  of  Crop  Cutting  Experiments  (CCEs) conducted  by  the  concerned  State  Government.    Claims  per  hectare  are  worked  out  by  the concerned  insurance  company  based  on  the  yield  data  provided  by  the  concerned  State Governemnt as per following formula :

Threshold Yield (TY) - Actual Yield (AY)

----------------------------------------------------  X  Sum Insured

Threshold Yield (TY)

Where Threshold Yield for a crop in a notified insurance unit is the average yield of best 5 years out of past 7 years multiplied by applicable indemnity level for that crop.

However, losses due to localized risks of hailstorm, landslide, inundation, cloud burst & natural fire and post-harvest losses are calculated on individual insured farm level, based on the report  of  the  joint  committee  comprising  representatives  of  State  Government  and  insurance company to survey the extent of loss.  Further, there  is also a provision to pay claims towards prevented sowing/failed germination and adhoc claims in case of mid season adversity.

- (b) & (c): State/UT-wise details of premium  collected and claims paid by insurance companies from 2016-17 to 2018-19 are given in Annexure-II.
- (d): As per provisions of the scheme banks remit the premium to insurance companies within stipulated cut-off date and submitt the individual farmer-wise details within 15 days after the cutoff date.  At the time of reconciliation of premium and data sent by the financial institutions, if there is any mis-match between premium and individual farmer's data, the excess premium is returned by the insurance companies to the concerned financial institutions.  Further, insurance company also process the applications and the requisite documents submitted by the farmers, especially  non-laonee  farmers.    If  the  application  or  documents  are  not  correct/duplicate documents, they reject the  application  and returned the  premium  in such cases.   There are such incidences in every season in every State including Maharashtra.
- (e): The Government has issued instructions from time to time to the financial institutions to remit the premium and famers' data correctly and timely on National Crop Insurance Portal so that incidents of mis-match can be reduced

## Salient Features of PMFBY

- (i) Provides  comprehensive  insurance  coverage  against  crop  loss  on  account  of  nonpreventable natural risks, thus helping in stabilising the income of the farmers and encourage them for adoption of innovative practices.

(ii) Increased risk coverage of Crop cycle - pre-sowing to post-harvest losses.

- (iii) Area approach for settlement of claims for widespread damage. Notified Insurance  unit has been reduced to Village/Village Panchayat  for major crops
- (iv) Uniform maximum premium of only 2%, 1.5% and 5% to be paid by farmers for all Kharif crops, Rabi Crops and Commercial/ horticultural crops respectively.
- (v) The difference between premium and the rate of Insurance charges payable by farmers is provided as subsidy and shared equally by the Centre and State.

(iv) Uniform seasonality discipline & Sum Insured  for both loanee & non-loanee farmers

(vii) Removal of the provision of capping on premium which led to reduction in sum insured to facilitate farmers to get claim against full sum insured without any reduction.

(viii) Individual  farm  level  assessment  and  settlement  of  claims  for  localized  calamities  of hailstorm, landslide, Inundation, Cloud Burst and Natural Fire and post harvest losses due to cyclone, cyclonic rain and hailstorm.

- (ix) Provision of individual farm level assessment for Post harvest losses against the cyclonic & unseasonal rains and hailstorm for the crops kept in the field for drying upto a period of 14 days, throughout the country.

(x) Provision of claims upto 25% of sum insured for prevented sowing.

- (xi) 'On-Account  payment'  upto  25%  of  sum  insured  for  mid  season  adversity,  if  the  crop damage is reported more than 50% in the insurance unit.  Remaining claims based on Crop Cutting Experiments (CCEs) data.
- (xii) Use of Remote Sensing Technology, Smartphones & Drones for quick estimation of crop losses to ensure early settlement of claims.
- (xiii) Crop  Insurance  Portal  has  been  developed  for  ensuring  better  administration,  coordination,  transparency,  dissemination  of  information  and  delivery  of  services  including crediting the claim amount electronically to the individual farmer's Bank Account.

(xiv)  Focused attention on increasing awareness about the schemes among all stakeholders and appropriate provisioning of resources for the same.

Annexure-II

## State/UT-wise details of premium collected and claims under PMFBY/RWBCIS

Rs in Crore

| State/UT Name    | Gross Premium   | Claims   | Gross Premium   | Claims   | Gross Premium   | Claims   |
|------------------|-----------------|----------|-----------------|----------|-----------------|----------|
| State/UT Name    | 2016-17         | 2016-17  | 2017-18         | 2017-18  | 2018-19*        | 2018-19* |
| A &NIslands      | 0.02            | 0.15     | 0.03            | 0.00     | 0.24            | 0.00     |
| Andhra Pradesh   | 845.45          | 944.43   | 1301.14         | 724.48   | 1328.73         | 1072.69  |
| Assam            | 8.65            | 5.36     | 11.89           | 1.11     | 11.24           | 0.09     |
| Bihar            | 1416.25         | 347.89   | 1027.66         | 396.17   | 0.00            | 0.00     |
| Chhattisgarh     | 325.77          | 160.07   | 361.87          | 1388.01  | 889.16          | 1058.41  |
| Goa              | 0.07            | 0.03     | 0.05            | 0.00     | 0.03            | 0.09     |
| Gujarat          | 2274.68         | 1267.20  | 3261.45         | 1076.14  | 3141.42         | 2591.51  |
| Haryana          | 364.39          | 296.22   | 453.17          | 899.37   | 840.68          | 923.06   |
| Himachal Pradesh | 71.68           | 45.18    | 77.51           | 64.71    | 75.61           | 10.19    |
| Jammu &Kashmir   | 0.00            | 0.00     | 40.97           | 9.80     | 79.06           | 12.13    |
| Jharkhand        | 271.81          | 31.17    | 211.93          | 45.96    | 395.55          | 73.04    |
| Karnataka        | 1356.29         | 2042.88  | 1834.10         | 859.20   | 1824.28         | 2306.26  |
| Kerala           | 33.15           | 44.55    | 25.87           | 10.94    | 36.30           | 12.35    |
| Madhya Pradesh   | 3778.64         | 2033.93  | 4946.73         | 5822.00  | 5364.07         | 122.29   |
| Maharashtra      | 4596.45         | 2316.43  | 4298.53         | 3286.60  | 6125.34         | 5466.90  |
| Manipur          | 3.59            | 1.96     | 1.94            | 0.67     | 0.21            | 0.00     |
| Meghalaya        | 0.05            | 0.03     | 1.42            | 0.02     | 0.10            | 0.09     |
| Odisha           | 539.05          | 432.16   | 820.32          | 1779.05  | 1077.85         | 1020.85  |
| Puducherry       | 2.88            | 7.57     | 0.00            | 0.00     | 3.11            | 0.45     |
| Rajasthan        | 2543.83         | 1946.85  | 2707.13         | 2174.61  | 3435.41         | 2077.07  |
| Sikkim           | 0.01            | 0.10     | 0.06            | 0.04     | 0.02            | 0.00     |
| Tamil Nadu       | 1191.07         | 3534.08  | 1297.14         | 1897.90  | 1362.12         | 1514.07  |
| Telangana        | 291.86          | 178.76   | 678.78          | 630.89   | 524.30          | 27.65    |
| Tripura          | 0.39            | 0.71     | 0.74            | 1.00     | 0.03            | 0.00     |
| Uttar Pradesh    | 1207.72         | 575.04   | 1390.61         | 380.46   | 1504.43         | 447.04   |
| Uttarakhand      | 41.44           | 27.47    | 67.84           | 39.44    | 75.12           | 47.78    |
| West Bengal      | 726.76          | 421.71   | 642.44          | 254.32   | 708.08          | 136.81   |
| GRANDTOTAL       | 21891.93        | 16661.92 | 25461.34        | 21742.90 | 28802.51        | 18920.84 |

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