Lok Sabha Question No. 1385 (UNSTARRED), answered on 2019-02-12
Subject: Fasal Bima Yojana
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: DUSHYANT CHAUTALA, BALASUBRAMANIAM SENGUTTUVAN

## GOVERNMENT OF INDIA

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

## LOK  SABHA UNSTARRED QUESTION NO. 1385

TO BE ANSWERED ON THE 12 TH  FEBRUARY, 2019

## FASAL BIMA YOJANA

1385.   SHRI DUSHYANT CHAUTALA: SHRI B. SENGUTTUVAN:

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

- (a) the details of the amount collected by the Government under Fasal Bima Yojana and the number of farmers benefited under this scheme till now;
- (b) whether the Government has achieved the target of beneficiaries under this scheme and if so, the details thereof;
- (c) the statistics relating to total compensation provided by the Government to farmers/insurance claims of the farmers settled since its introduction, year-wise and State/UTwise;
- (d) whether  the  Government's  Crop  Insurance  Scheme  is  effective  enough  to  cover  crop failures  and  losses  to  the  farmers  due  to  the  natural  calamities  on  payment  of  the  lowest possible  premium  which  would  alleviate  the  rural  misery  and  distress  and  if  so,  the  details thereof;
- (e) the salient aspects of this Crop Insurance Scheme and the manner in which it is better than the schemes introduced earlier; and
- (f) whether there is any capping on the premium payable by the farmers in order to get an enhanced compensation, and if so, the details thereof?

## 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 (f) :     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, Pradhan Mantri Fasal Bima Yojana (PMFBY), has been launched from Kharif 2016 by the Government. The scheme has been implemented by 27 States/Union Territories in one or more seasons.

As  per  the  approved  implementation  pattern  of  Pradhan  Mantri  Fasal  Bima  Yojana (PMFBY),  the  State/UT  Governments  have  the  choice  to  select  the  crops  and  areas  for implementation of the scheme in the respective State/UT. The number of farmers who received claims  due  to  crop  loss  under  PMFBY  has  increased  from  1,44,22,403  in  2016-17  to 1,62,25,283 in 2017-18.    State-wise details of gross premium, farmers share in premium, total Continue…..2/-

claims  approved  and  number  of  farmers  who  received  claims  under  the  scheme  are  at Annexure-I.

Crop insurance is a major risk mitigation tool for the benefit of farmers.  Insurance is all about spreading out the risk  over  the  time  period  and  over  the  geographical  area.    Insurers save premium in good seasons/years and pay high claims, if any in bad years from the savings made in the good years.

The  premium  for  all  farmers  has  been  reduced  and  the  farmers  are  required  to  pay maximum 1.5%  of sum insured for Rabi, 2% for Kharif  season food & oilseed crops and 5% for annual commercial/ horticultural crops of sum insured. Remaining part of the actuarial/bidded premium is paid by the Central and State Government on 50 : 50 basis.   With a  view  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. Salient features of the scheme are given in Annexure-II.

## Annexure-I

Annexure referred to the Lok Sabha Unstarred Question No. 1385 due for 12.02.2019 State-wise details of farmers share premium collected, Gross Premium, total claims approved and farmers benefitted under during 2016-17 and 2017-18

| State / UT                 | 2016-17 Gross Premium   | Farmers Share Premium   | Claims Approved   | Farmers Benefited   | Gross Premium     | Farmers Share in Premium   | Claims Approved   | Farmers Benefited   |
|----------------------------|-------------------------|-------------------------|-------------------|---------------------|-------------------|----------------------------|-------------------|---------------------|
|                            | (Rs. in crore)          | (Rs. in crore)          | (Rs. in crore)    | (in lakhs)          | (Rs. in crore)    |                            |                   | (in lakhs)          |
| A & N Islands              | 0.02                    | 0.00                    | 0.15              | 0.003               | 0.03              | 0.01                       | -                 | 0                   |
| Andhra Pradesh             | 845.80                  | 199.57                  | 902.93            | 8.82                | 1,341.38          | 265.77                     | 612.88            | 6.09                |
| Assam                      | 8.65                    | 4.97                    | 5.15              | 0.23                | 12.51             | 5.37                       | 0.78              | 0.01                |
| Bihar                      | 1,416.26                | 204.62                  | 348.58            | 2.21                | 1,015.94          | 177.84                     | 405.19            | 1.09                |
| Chhattisgarh               | 325.77                  | 136.49                  | 160.07            | 1.37                | 382.32            | 139.87                     | 1,381.35          | 6.43                |
| Goa                        |                         |                         | 0.03              |                     | 0.05              | 0.05                       | 0.00              | 0.0002              |
| Gujarat                    | 0.07 2,270.27           | 0.07                    | 1,261.97          | 0.001 6.79          | 3,261.45          | 398.38                     | 1,053.05          | 4.17                |
| Haryana                    | 364.39                  | 243.03 196.53           | 295.97            | 2.19                | 452.45            | 208.48                     | 864.38            | 2.79                |
| Himachal Pradesh           | 71.63                   | 31.10                   | 45.18             | 1.12                | 77.97             | 30.63                      | 50.53             | 1.18                |
|                            |                         | *                       | *                 | *                   |                   |                            | 9.91              | 0.26                |
| Jammu & Kashmir            | *                       |                         |                   |                     | 40.99             | 9.00                       | 41.61             | 1.16                |
| Jharkhand                  | 271.81                  | 39.63                   | 31.17             | 0.60                | 217.18            | 28.62                      | 849.66            | 6.60                |
| Karnataka                  | 1,416.64                | 243.40                  | 1,924.52          | 14.94               | 1,774.65          | 225.17                     | 10.35             |                     |
| Kerala                     | 33.15                   | 7.22                    | 44.55             | 0.57                | 26.10             | 6.40                       |                   | 0.37                |
| Madhya Pradesh Maharashtra | 3,755.46 4,596.88       | 709.76 682.55           | 2,002.09 2,316.81 | 12.91 29.07         | 4,943.12 4,202.62 | 874.61 501.28              | 5,681.80 3,251.96 | 19.87 53.12         |
| Manipur                    | 3.59                    | 0.74                    |                   |                     |                   | 0.75                       | 0.50              | 0.02                |
| Meghalaya                  | 0.04                    | 0.01                    | 1.96              | 0.08 0.0005         | 1.94              | 1.01                       | 0.02              | 0.0001              |
| Odisha                     | 539.05                  |                         | 0.03              | 1.68                | 1.42              | 151.22                     |                   | 7.55                |
| Puducherry                 | 2.88                    | 142.63 0.22             | 431.34            | 0.04                | 854.70            | *                          | 1,772.40 *        | *                   |
| Rajasthan                  | 2,545.36                | 367.33                  | 7.57 1,899.35     | 28.42               | * 2,571.82        | 475.31                     | 1,754.21          | 24.38               |
| Sikkim                     | 0.01                    | 0.01                    | 0.11              | 0.002               | 0.06              | 0.06                       | -                 | 0                   |
|                            | 1,232.08                | 112.54                  | 3,476.05          | 11.97               | 1,443.56          | 135.65                     | 1,231.05          | 4.23                |
| Tamil Nadu Telangana       | 291.90                  | 113.52                  | 178.75            | 2.23                | 644.10            | 177.08                     | 528.34            | 3.55                |
| Tripura                    | 0.39                    | 0.29                    | 0.71              | 0.04                | 0.74              | 0.59                       | 0.96              | 0.03                |
| Uttar Pradesh              | 1,183.86                | 514.98                  | 561.01            | 11.52               | 1,387.57          | 384.39                     | 370.85            | 5.77                |
| Uttarakhand                | 41.58                   | 19.55                   | 27.47             | 0.61                | 67.84             | 18.81                      | 37.88             | 0.66                |
| West Bengal                | 726.76                  |                         | 421.49            |                     | 701.39            | 259.66                     | 248.22            |                     |
|                            |                         | 230.10                  |                   | 5.39                |                   |                            |                   | 4.45                |

*State/UT did not implement the scheme.

## Annexure referred to in reply to Lok Sabha Unstarred Q. No. 1385 due for 12.02.2019

## 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,  co-ordination, 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.

## To facilitate timely settlements of claims Revised Operational Guidelines from Rabi 2018-19 inter alia provides for :

- 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  has  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.

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