Lok Sabha Question No. 3430 (UNSTARRED), answered on 2019-01-01
Subject: Restructured WBCIS
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: S. RAJENDRAN, MANSUKHBHAI DHANJIBHAI VASAVA, RAMA DEVI, VIJAY KUMAR S.R.

## GOVERNMENT OF INDIA

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

## LOK  SABHA UNSTARRED QUESTION NO.3430

TO BE ANSWERED ON THE  1 ST  JANUARY, 2019

## RESTRUCTURED WBCIS

3430.  SHRI S. RAJENDRAN:

SHRI MANSUKHBHAI DHANJIBHAI VASAVA:

SHRIMATI RAMA DEVI:

SHRI S.R. VIJAYAKUMAR:

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

- (a) whether  many  instances  have  come  to  the  notice  of  the  Government  where compensation amount under the crop insurance scheme has not been paid to farmers;
- (b) 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;
- (c) whether  the  Government  has  also  launched  Restructured  Weather  Based  Crop Insurance Schemes(RWBCIS);
- (d) if so, the details thereof and the manner in which the above scheme is different from the Pradhan Mantri Fasal Bima Yojana;
- (e) whether  the  number  of  farmers  benefited  and  insured  under  Restructured  Weather Based Crop Insurance Scheme in the country is constantly declining and if so, the reaction of the Government thereto;
- (f) the various trends being indicated by the decline in the said number and the corrective steps taken by the Government in this regard; and
- (g) the outcome of the said corrective steps taken?

## 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)  & (b): The detailed activity-wise seasonality discipline, including timelines for settlement of claims by insurance companies within two months of crop harvest, subject to timely release of subsidy and yield data to the insurance companies, has been prescribed in Operational  Guidelines  of  Pradhan  Mantri  Fasal  Bima  Yojana  (PMFBY)  to  ensure  timely payment of claims to insured farmers.   Most of the claims of year 2016-17 and Kharif 2017 were settled within the prescribed timelines, accordingly.

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 State/areas get delayed due to reasons like delayed transmission to 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 ensure better transparency, accountability and timely payment of claims to the farmers, Government has comprehensively revised the Operational Guidelines of the scheme which have become effective from 01.10.2018. The Revised Operational Guidelines, inter-alia,  envisage  activities-wise  seasonality  discipline  including  timeliness  for  release  of subsidy by Government to insurance companies and settlement of claims eligible farmers by concerned  insurance  companies.  The  following  provisions,  have  also  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.

(c) to (g): Yes Madam. Restructured Weather Based Crop Insurance Schemes (RWBCIS)  has  been  specifically  formulated  to  cover  those  annual/perennial  commercial/ horticultural crops where methodology for calculation of yield data/past yield data based on CCEs, as required under 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  Termsheets 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).     However, with respect to all other parameters namely, premium  rates  for  farmers,  selection  of  insurance  company  through  transparent  bidding process, sum insured equal to Scale of Finance etc. the two schemes are at par.

It is the prerogative of the State Government to select the scheme or implement both the  Schemes  in  the  State/UT.      States/UTs  are  notifying  more  crops  and  areas  under  all perils inclusive and improved PMFBY.

A wide network of AWSs and ARGs are required for implementation of RWBCIS. To  promote  the  scheme,  a  provision  has  been  made  by  the  Government  of  India  to provide 50% share of set up of AWSs and ARGs in public private participation mode.

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