Lok Sabha Question No. 348 (UNSTARRED), answered on 2020-02-04
Subject: Assessment of Crop Insurance Claims
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Manoj Kishorbhai Kotak

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

## LOK  SABHA

UNSTARRED QUESTION NO. 348 TO BE ANSWERED ON THE 4 TH  FEBRUARY, 2020

## ASSESSMENT OF CROP INSURANCE CLAIMS

348.   SHRI MANOJ KOTAK:

Will  the  Minister  of  AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी

be pleased to state:

- (a) whether the Government is going to use technical equipment and satellite image to assess the damage of crops of farmers for Fasal Bima Yojana;
- (b) if so, the details thereof;
- (c) whether it is a fact that there is a provision of payment of interest by the insurance companies on the farmers' claims if there is delay in settlement of the crop claims beyond two months; and
- (d) if  so,  the  details  thereof  and  the  details  of  the  interest  paid  so  far,  State-wise, especially in Maharashtra?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

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

(a) & (b): Pradhan Mantri Fasal Bima Yojana (PMFBY)  provides for use of technology for  better  implementation  of  the  scheme.  Accordingly,  National  Crop  Insurance  Portal (NCIP) has been developed for ensuring better administration, co-ordination, transparency, dissemination of information and delivery of services including uploading/obtaining details of individual insured farmers for better monitoring and to ensure transfer of claim amount electronically to the individual farmer's Bank Account.  To ensure timely payment of claims, scheme envisages mandatory use of smartphone/CCE-Agri App for real time  transfer of data on national crop insurance portal.     Farmers'app has also been launched, on which farmers can track their crop insurance application and get all information about it.

Further, the Department of Agriculture, Cooperation and Farmers Welfare, through Mahalanobis  National  Crop  Forecast  Centre  (MNCFC)  had  carried  out  pilot  studies  for Smart  Sampling  Technique/Optimization  of  Crop  Cutting  Experiments  (CCEs)  using Remote Sensing/Sattelite data in various States involving 8 agencies/ organizations during Kharif  2018  and  Rabi  2018-19  under  PMFBY.      The  review  of  these  pilot  studies  was carried out by High Level Committee constituted for the purpose.

Accordingly, based on these results and the technologies which were verified during the  Pilot  studies,  the  Government  rolled  out  Smart  Sampling  Technique  (CCE  location selection using satellite data) and optimization of CCEs, in 96 districts of 9 States, for rice crop, during Kharif, 2019. Around 1 lakh CCEs for Rice crop were conducted, during Kharif 2019, using Smart Sampling Technique.

Pilot studies have been undertaken for estimation of yield at Gram Panchayat level, during Kharif 2019, through 12 agencies, by use of technology (Satellite data, Unmanned Aerial  Vehicle  (UAV),  Artificial  Intelligence,  Machine  Learning,  etc.).      As  soon  as statistically sound methodology for yield estimaton through technology is established for the crop, the same may be adopted.

(c) & (d): Yes  Sir.  A  provision  for  payment  of  12%  penal  interest  by  concerned insurance company to farmer, if the company failed to settle the claims within stipulated period  of  two  months  subject  to  certain  conditions,  has  been  made  in  the  Revised Operational Guidelines of PMFBY.

Government has imposed interest penalty of Rs. 3.30 crore, Rs. 0.09 crore, Rs. 0.51 crore, Rs. 0.15 crore and Rs. 0.16 crore on Agriculture Insurance Company of India Ltd., Cholamandalm-MS  General  Insurance  Company  Ltd.,  ICICI-Lombard  General  Insurance Company Ltd., New India Assurance Company Ltd. and SBI General Insurance Company Ltd. respectively vide letter dated September 25, 2019.   In reply they have submitted their explanations requesting for review. A meeting has been called to discuss the explanations submitted by the insurance companies.

Apart  from  this,  State  Governments  have  been  advised  to  impose  penalities  on insurance  companies  themselves.    Accordingly,  some  State  governments  like  Uttar Pradesh,  Gujarat  and  Haryana  have  also  imposed  penalty  on  insurance  companies  for non-perforamnce of certain provisions of the scheme and have deducted the penalty from State share of premium subsidy to insurance companies.

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