Lok Sabha Question No. 3441 (UNSTARRED), answered on 2021-03-16
Subject: Rejection of PMFBY Claims
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Vellalath Kochukrishnan Nair. Sreekandan

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

## LOK SABHA UNSTARRED QUESTION NO. 3441

TO BE ANSWERED ON THE 16 TH  MARCH, 2021

## REJECTION OF PMFBY CLAIMS

3441. SHRI V.K. SREEKANDAN:

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

(a)  whether  the  number  of  farmers'  crop  insurance  claims  that  were  rejected  by insurance companies  under  the Pradhan  Mantri  Fasal  Bima  Yojana  (PMFBY) multiplied 10 times in just two years and if so, the details thereof;

(b) whether nearly 10 lakh such claims had been rejected by the insurance companies in 2019-20;

(c) if  so, the reasons stated by the insurance companies while rejecting such a huge amount of claims;

(d)  whether  the  reasons  stated  for  rejection  of  claims  were  commensurate  with  the guidelines of PMFBY; and

(e) if not, the action proposed against such insurance companies?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी

(SHRI NARENDRA SINGH TOMAR)

(a) to (e): Pradhan  Mantri  Fasal  Bima  Yojana  (PMFBY)  provides  cover  on  crop yield  losses  on  an  area-based  approach  basis  due  to  non-preventable  risks  like drought,  dry  spells,  flood,  etc.    The  scheme  also  provides  provision  of  farm-level assessment of crop loss arising due to localized calamities and post-harvest losses due to defined perils, which affect the limited areas/plots in notified insurance unit. Claim assessment for farm-level loss intimations is done by a joint loss assessment committee of State Government and concerned insurance companies.

As  per  scheme  provisions,  crop  loss  intimation  is  required  only  for  the  crops damaged due to notified perils for individual farm-level claims.  However, admissible claims  under  area-based  approach  are  paid  to  all  eligible  insured  farmers  in  the given area based on shortfall in the  yield  against the Guaranteed/Threshold  yield. Further,  even  if  individual  farm-level  claims  have  been  rejected,  farmers  are  still eligible  for  claim  payout  under  area-based  approach  claims  at  the  end  of  the season. Individual farm level claim/crop loss intimations increased three times from 14 lakh crop loss intimations in 2017-18 to over 42 lakh individual claim/crop loss intimations in  2019-20.  This  increase  in  intimation  of  individual  level  claim  intimations  can  be attributed  to  various  factors  such  as  increase  in  farmer  awareness,  ease  of  claim intimation process, and increase in occurrence of natural calamities etc. In the past two years, the government has also streamlined the process of crop loss intimation  and  farmers  intimate  losses  from  the  comfort  of  their  homes  instead  of going to nearby point of contact such as bank, agriculture office, etc.   Some major reasons  for  rejection  of  farm-level  claim  intimations  include  area/crop  not  notified under PMFBY,   farmer not enrolled in PMFBY, peril not covered for individual farm level  claim,    claim  not  intimated  within  prescribed  timelines,  claim  intimation  not required, etc.

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