Lok Sabha Question No. 1717 (UNSTARRED), answered on 2019-07-02
Subject: Role of State Governments in PMFBY
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shobha Karandlaje

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

## LOK  SABHA

## UNSTARRED QUESTION NO.1717 TO BE ANSWERED ON THE  2 ND  JULY, 2019

## ROLE OF STATE GOVERNMENTS IN PMFBY

## 1717.  KUMARI SHOBHA KARANDLAJE:

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

- (a) whether the State Governments have a major role in implementation of the Pradhan Mantri Fasal Bima Yojana (PMFBY) ;
- (b) if so, the role of the State Government of Karnataka in finalising insurance companies through bidding process, deciding clustering of districts, furnishing past yield data, furnishing yield data to insurance companies for calculation of claims, releasing their share of premium subsidy etc.;
- (c) the  details  of  the  premium  received  by  insurance  companies  and  claims  paid  to  the farmers since inception of the scheme in Karnataka, Kharif and Rabi crop-wise;
- (d) whether  the  payment  of  claims  in  some  States/areas  get  delayed  due  to  various reasons and if so, the corrective measures taken in this regard; and
- (e) the planning of the Government to comprehensively revise the Operational Guidelines of the PMFBY, since States are the implementing agencies ?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

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

(a)  & (b): Yes  Sir.  State/Union  Territories  which  have  opted  for  implementation  of  the scheme in their States have a major role in implementation of the Pradhan Mantri Fasal Bima Yojana (PMFBY). As per the scheme provisions, the State Governments decide crops and areas  for  implementation  of  the  scheme,  select  insurance  companies  through  bidding process, decide clustering of districts, furnish past yield data for calculation of Threshold Yield and premium rates, conduct Crop Cutting Experiments (CCEs), furnish yield data to insurance companies  for  calculation  of  claims,  release  their  share  of  premium  subsidy,  establish Grievance Redressal Committees, monitoring of the scheme etc. and conduct Joint Survey with  the  representatives  of  the  concerned  insurance  companies  for  determination  of  claims under  Add-on  products,  such  as,  crop  loss  for  prevented  sowing,  mid-season  adversity, localized calamities and post-harvest losses.

Karnataka Governments is also running its own portal 'Samrakhsne' for implementation of the scheme including enrolment of farmers and calculation/initiation of claims for payment to the farmers by the concerned insurance company etc.

(c): Kharif  and  Rabi  season-wise  details  of  gross  premium  (including  farmers  share  and Government subsidy in premium) paid to insurance companies and claims paid to farmers in Karnataka is given below:

| Season       |   Gross Premimu |   Estimated Claims | Approved   | (Rs. In crore) Paid Claims   |
|--------------|-----------------|--------------------|------------|------------------------------|
| Kharif 2016  |          873.57 |            1171.19 | 1171.19    | 1170.94                      |
| Rabi 2016-17 |          669.48 |             644.01 | 553.77     | 553.75                       |
| Kharif 2017  |         1812.4  |             817.3  | 811.19     | 811.19                       |
| Rabi 2017-18 |           52.18 |              39.34 | 39.34      | 39.34                        |
| Kharif 2018  |         1408.57 |             748.61 | 98.20*     | 28.96*                       |
| Rabi 2018-19 |          496.64 |             145.22 | 0.71*      | 0.71*                        |

*Most of the claims for Kharif 2018 and Rabi 2018-19 seasons have not been initiated by the Karnataka State Government on their portal.

(d) & (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 and total State share of  premium  subsidy  from  concerned  State Government  within time.  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.  However,  this  Department  is regularly monitoring the implementation of PMFBY including timely settlement of  claims.

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 Yoana (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 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.
- (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 cut off 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 date including add on features.
- (x) Inclusion of perennial crops and add on coverage for damage by wild animals on pilot basis.

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