Lok Sabha Question No. 1403 (UNSTARRED), answered on 2020-09-20
Subject: Delays in PMFBY
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Maneka Sanjay Gandhi

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

## LOK  SABHA UNSTARRED QUESTION NO. 1403

TO BE ANSWERED ON THE 20 TH  SEPTEMBER, 2020

## DELAYS IN PMFBY

## 1403.   SHRIMATI MANEKA SANJAY GANDHI:

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

- (a) whether  it  is  a  fact  that  there  are  delays  in  release  of  claims  to  farmers  under Pradhan Mantri Fasal Bima Yojana (PMFBY), if so the details and reasons thereof;
- (b) whether  there  are  instances  where  insurance  companies  have  unduly  benefited from the scheme by having a monopoly in a district and going slow on issuing insurance during a drought year, if so, the details thereof; and
- (c) the details of reforms taken to improve the scheme?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE

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

- (a): 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  National  Electronic  Funds  Transfer  (NEFT)  related issues,  etc.    However,  this  Department  is  regularly  monitoring  the  implementation  of PMFBY including  timely  settlement  of  claims.    Penalty  provisions  for  late  settlement  of claims by insurance companies and late release of funds by State Governments have also been stipulated under the scheme.
- (b): No such incidence has been reported by any State Government. However, farmers can insure themselves through Common Service Centres and directly online on National Crop Insurance Portal (NCIP).  Further, for transparency and monitoring both by Central and State Governments, individual farmers data is uploaded on the NCIP.

Moreover,  other  desirous  empanelled  insurance  companies  are  also  allowed  to insure  the  non-loanee  farmers  on  same  premium  rates  to  bring  more  competition  and infrastructure for enrolment of farmers within district.

- (c):    Keeping  in  view  the  experience  of  implementation  of  PMFBY  in  4  years  and  after detailed discussions with stakeholders, Government has recently approved the revamping of  the  Pradhan  Mantri  Fasal  Bima  Yojana  (PMFBY)  and  Restructured  Weather  Based Crop Insurance Scheme  (RWBCIS)  for  implementation  from Kharif 2020  season. Changes/improvements made in the provisions/parameters of these schemes are given in Annexure .

## Changes/Improvements made in the provisions/parameters of PMFBY and RWBCIS w.e.f. Kharif 2020 season

-  To address the demand of farmers, the scheme has been made voluntary for all farmers. However, there is no change in farmers' share of premium.
-  The premium subsidy sharing pattern between Centre and North Eastern States has been changed from 50:50 to 90:10.  This has been done to allow more States to notify the scheme and existing States to notify more crops and areas to facilitate greater coverage of farmers under the scheme.  For remaining States, subsidy sharing pattern will continue as 50:50.
-  To address the issue of high premium rate for few crops/areas due to adverse selection, the requisite central share of premium subsidy (90:10 for North Eastern States and 50 : 50 for remaining  States)  will  be  provided  for  areas/crops  upto  gross  premium  rate  of  25%  for irrigated  and  30% for  un-irrigated areas/crops. Besides, alternate risk mitigation measures will be explored for these areas/crops.
-  Insurance companies will now be selected by the States for 3 years in a go instead of one year thereby increasing their commitment and accountability to the farmers.
-  Option has been given to the States to choose the notional value of average yield or the Scale of Finance as sum insured in the interest of the farming community.
-  In view of the demand of many states, option has been given to states to choose additional risk  covers  besides  shortfall  in  yield-based  cover  depending  upon  the  local  weather challenges and requirements of the farmers.
-  The states delaying the release of subsidy beyond stipulated timelines can not participate in upcoming seasons.
-  Two-step  process  of  crop  yield  estimation  using  weather  and  satellite  indicators  etc.  is adopted, which will help in early assessment of loss.
-  Use of smart sampling technique through satellite data for crop cutting experiments by some states has shown increased efficiency in implementation. This will now be universalized.
-  The delay by some States in submission of crop yield data will now be suitably addressed using technological solutions.
-  Provision has been made for earmarked administrative expenses @ 3% for strengthening the infrastructure and technology usage for better delivery of the Scheme.
-  Insurance  companies  have  been  asked  to  mandatorily  utilize  0.5%  of  gross  premium collected by them for IEC activities at grass root level to build overall insurance literacy of farmers to take informed decisions.
-  Use of more technology for transparency and quick assessment of crop yield/loss for early settlement of claims.

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