Lok Sabha Question No. 3255 (UNSTARRED), answered on 2019-01-01
Subject: New Crop Insurance Scheme
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: T. RADHAKRISHNAN, SUDHEER GUPTA, KUNWAR HARIBANSH SINGH, ASHOK SHANKARRAO CHAVAN, KONAKALLA NARAYANA RAO

## GOVERNMENT OF INDIA

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

## LOK  SABHA UNSTARRED QUESTION NO. 3255

TO BE ANSWERED ON THE 1 ST   JANUARY, 2019

## NEW CROP INSURANCE SCHEME

3255.  SHRI T. RADHAKRISHNAN: SHRI SUDHEER GUPTA: KUNWAR HARIBANSH SINGH: SHRI ASHOK SHANKARRAO CHAVAN: SHRI KONAKALLA NARAYANA RAO:

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

- (a) the present status and the salient features of New Crop Insurance Scheme;
- (b) whether  free  crop  insurance  would  be  ensured  for  the  small  and  marginal  farmers  of Maharashtra and rest of the country, if so, the details thereof and if not, the reasons therefor;
- (c) the details of the precautions taken by the Government to make the scheme Suraksha Kavach more advantageous to the farmers from getting out of burden of premiums and crop losses;
- (d) whether many instances have came to the notice of the Government where compensation  amount  under  the  crop  insurance  scheme  has  not  been  paid  or  paid  after abnormal delays to farmers, if so, the details thereof and the reasons for the same along with the corrective measures taken/being taken by the Government in this regard;
- (e) whether  the  Government  has  also  launched  Restructured  Weather  Based  Crop Insurance Schemes (RWBCIS) and if so, the details thereof and the manner in which the above scheme is different from the Pradhan Mantri Fasal Bima Yojana; and
- (f) the number of farmers who have been benefited under RWBCIS so far, State/ UT-wise?

## 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 (d): A  new  crop  insurance  scheme,  namely,  Pradhan  Mantri  Fasal  Bima  Yojana (PMFBY)  was  launched  from  Kharif  2016  season  and has  been  implemented  by  27 States/Union Territories in one or more seasons.  Salient features of the scheme are given in Annexure-I.

The premium for all farmers including small and marginal farmers has been reduced and the  farmers  are  required  to  pay  maximum  1.5%    of  sum  insured  for  Rabi  and  2%  for  Kharif season food & oilseed crops.  The maximum premium rate for annual commercial/ horticultural

crops is 5% of sum insured.   Remaining part  of the  actuarial/bidded  premium is  paid  by the Central and State Government on 50 : 50 basis.  In some States like West Bengal, Jharkhand, Tripura, Assam and Andaman & Nicobar Islands, etc, State Government is also paying full or partial share of farmer's premium.

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 and total State share of premium subsidy from concerned State Government within time. However, payment of claims in some States/areas gets delayed due to reasons like delayed transmission of yield data, dispute raised by Insurance Companies on yield data, reconciliation of individual farmer data on portal by bank branches, late release of their share in premium subsidy by some States and NEFT related issues, etc.

With a view to resolve the aforesaid issues and to make the scheme more farmer friendly by ensuring better transparency and accountability, Government has comprehensively revised the  Operational  Guidelines  of  the  Pradhan  Mantri  Fasal  Bima  Yojana  (PMFBY)  which  have become  effective  from  01.10.2018.    The  guidelines,  inter-alia,  provide  for  the  following  to facilitate timely settlements of claims:-

- i) Detailed  activity-wise  seasonality  discipline  including  real  time  transmission  of  Crop Cutting Experiments/yield data through smartphone, reconciliation and approval of yield data and auto calculation of claims on National Crop Insurance Portal (NCIP).
2. ii)  Compulsory uploading of details of individual insured farmers including bank details on NCIP by farmers, banks, Common Service Centers(CSC) and insurance company and their inter-mediaries, and reconciliation and approval of this data.
3. iii)  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.
4. iv)  State Government have to pay 12% interest rate for delay in release in State share of Subsidy  beyond  three  months  of  prescribed  cut  off  date/submission  of  requisition  by Insurance Companies.
- v)  Payments of claim directly to the bank account of beneficiary farmers including Aadhar based UPI payments.

(e) & (f): Yes, Madam.  Restructured Weather Based Crop Insurance Schemes (RWBCIS) has been specifically formulated to cover those crops where methodology for calculation of yield data/past  yield  data  based  on  CCEs,  as  required  under  yield  index  based  PMFBY,  is  not available.      Further,  the  availability  of  past  weather  data  and  requisite  infrastructure  viz. Automatic Weather Stations (AWSs) and Automatic Rain Gauge Stations (ARGs) needs to be ensured/notified by the State Government.

The  RWBCIS  provides  insurance  protection  to  farmers  against  adverse  weather incidence, such as deficit and excess rainfall, high or low temperature, humidity etc. the factors which are deemed to impact adversely the crop production.  Thus it is a named peril insurance scheme  and  claims  are  calculated  on  the  basis  of  difference  in  (below  or  above)  observed trigger value.    The State Government in consultation with experts and insurance companies decide  trigger  points/values  for  loss  calculation  and  finalise  area-wise  Term-sheets  for  each crop.    The  assessment/reference  unit  area  under  the  scheme  is  related  to  availability  of Automatic Weather Stations (AWSs)/Automatic Rain-Gauge Stations (ARGs), which are mostly available  at  circle,  block  levels.      Unlike  RWBCIS,      Pradhan  Mantri  Fasal  Bima  Yojana (PMFBY) is a yield index linked /comprehensive risk insurance scheme covering pre-sowing to post  harvest  losses    wherein  insurance  unit  is  village/village  panchayat  for  major  crops  and claim calculation is based on yield/loss assessment through Crop Cutting Experiments (CCEs). Continue….3/-

However,  all  other  parameters,  namely,  enrolment  of  farmers,  premium  rates  for  farmers, selection  of  insurance  company  through  transparent  bidding  process,  sum  insured  equal  to Scale of Finance etc. are same in both schemes.

However,  it  is  the  prerogative  of  the  State  Government  to  select  the  scheme  or implement both the Schemes in the State/UT and notify crops and areas.

State/UT-wise details of farmers covered and farmers benefitted under RWBCIS since its inception till Kharif 2017are are at Annexure-II .

## Annexure referred to in reply to Part (a) to (d) of Lok Sabha Unstarred Q. No. 3255 due for 01.01.2019

## Salient Features of PMFBY

- i) Provides  comprehensive  insurance  coverage  against  crop  loss on account of non-preventable natural risks, thus helping in stabilising the income of the farmers and encourage them for adoption of innovative practices.
2. ii) Increased risk coverage of Crop cycle - pre-sowing to post-harvest losses.
3. iii) Area  approach  for  settlement  of  claims  for  widespread  damage.  Notified  Insurance unit has been reduced to Village/Village Panchayat  for major crops
4. 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.
6. vi) Uniform seasonality discipline & Sum Insured  for both loanee & non-loanee farmers
7. 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.
8. viii) Individual farm level assessment and settlement of claims for localized calamities of hailstorm, landslide, Inundation, Cloud Brust and Natural Fire.
9. 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.
11. 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.
12. xii) Use of Remote Sensing Technology, Smartphones & Drones for quick estimation of crop losses to ensure early settlement of claims.
13. 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
14. xiv) Focused attention on increasing awareness about the schemes among all stakeholders and appropriate provisioning of resources for the same.

| Annexure-II                                                                                                       | Annexure-II                                                                                                       | Annexure-II                                                                                                       | Annexure-II                                                                                                       | Annexure-II                                                                                                       | Annexure-II                                                                                                       |
|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|
| Annexure referred to in reply to Part (e) and (f) of the Lok Sabha Unstarred Question No. 3255 due for 01.01.2019 | Annexure referred to in reply to Part (e) and (f) of the Lok Sabha Unstarred Question No. 3255 due for 01.01.2019 | Annexure referred to in reply to Part (e) and (f) of the Lok Sabha Unstarred Question No. 3255 due for 01.01.2019 | Annexure referred to in reply to Part (e) and (f) of the Lok Sabha Unstarred Question No. 3255 due for 01.01.2019 | Annexure referred to in reply to Part (e) and (f) of the Lok Sabha Unstarred Question No. 3255 due for 01.01.2019 | Annexure referred to in reply to Part (e) and (f) of the Lok Sabha Unstarred Question No. 3255 due for 01.01.2019 |
| Details of enrolments and farmers benefitted during 2016-17 and Kharif 2017 under RWBCIS                          | Details of enrolments and farmers benefitted during 2016-17 and Kharif 2017 under RWBCIS                          | Details of enrolments and farmers benefitted during 2016-17 and Kharif 2017 under RWBCIS                          | Details of enrolments and farmers benefitted during 2016-17 and Kharif 2017 under RWBCIS                          | Details of enrolments and farmers benefitted during 2016-17 and Kharif 2017 under RWBCIS                          | Details of enrolments and farmers benefitted during 2016-17 and Kharif 2017 under RWBCIS                          |
| Sr. No.                                                                                                           | State / UT                                                                                                        | Farmer Enrolments                                                                                                 | Farmer Enrolments                                                                                                 | No. of Farmers Benefitted                                                                                         | No. of Farmers Benefitted                                                                                         |
|                                                                                                                   |                                                                                                                   | 2016-17                                                                                                           | Kharif 2017                                                                                                       | 2016-17                                                                                                           | Kharif 2017                                                                                                       |
| 1                                                                                                                 | Andhra Pradesh                                                                                                    | 766,455                                                                                                           | 770,531                                                                                                           | 757,781                                                                                                           | 540,847                                                                                                           |
| 2                                                                                                                 | Assam                                                                                                             | 51,749                                                                                                            | -                                                                                                                 | 23,370                                                                                                            | -                                                                                                                 |
| 3                                                                                                                 | Chhattisgarh                                                                                                      | 6,690                                                                                                             | 5,233                                                                                                             | 1,059                                                                                                             | 4,363                                                                                                             |
| 4                                                                                                                 | Himachal Pradesh                                                                                                  | 119,360                                                                                                           | 17,446                                                                                                            | 89,251                                                                                                            | 16,752                                                                                                            |
| 5                                                                                                                 | Karnataka                                                                                                         | 132,026                                                                                                           | 150,458                                                                                                           | 60,221                                                                                                            | 99,020                                                                                                            |
| 6                                                                                                                 | Kerala                                                                                                            | 58,990                                                                                                            | 20,918                                                                                                            | 52,735                                                                                                            | 17,853                                                                                                            |
| 7                                                                                                                 | Madhya Pradesh                                                                                                    | 513,595                                                                                                           | 158,879                                                                                                           | 367,450                                                                                                           | 129,583                                                                                                           |
| 8                                                                                                                 | Maharashtra                                                                                                       | 212,558                                                                                                           | 55,801                                                                                                            | 121,912                                                                                                           | 54,411                                                                                                            |
| 9                                                                                                                 | Rajasthan                                                                                                         | 44,150                                                                                                            | 23,231                                                                                                            | 42,728                                                                                                            | 18,287                                                                                                            |
| 10                                                                                                                | Telangana                                                                                                         | 88,772                                                                                                            | 186,665                                                                                                           | 83,575                                                                                                            | 130,668                                                                                                           |
| 11                                                                                                                | Uttar Pradesh                                                                                                     | 6,250                                                                                                             | 3,771                                                                                                             | 3,548                                                                                                             | 3,767                                                                                                             |
| 12                                                                                                                | Uttarakhand                                                                                                       | 53,396                                                                                                            | 35,981                                                                                                            | 43,570                                                                                                            | 35,300                                                                                                            |
| 13                                                                                                                | West Bengal                                                                                                       | 1,713                                                                                                             | -                                                                                                                 | 13                                                                                                                | -                                                                                                                 |
|                                                                                                                   | Grand Total                                                                                                       | 2,055,704                                                                                                         | 1,428,914                                                                                                         | 1,647,213                                                                                                         | 1,054,455                                                                                                         |

*********