Lok Sabha Question No. 4584 (UNSTARRED), answered on 2019-01-08
Subject: Delay in Payments under PMFBY
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: PARAYAMPARANBIL KUTTAPPAN BIJU

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

## LOK  SABHA UNSTARRED QUESTION NO.4584

TO BE ANSWERED ON THE  8 th  JANUARY, 2019

## DELAY IN PAYMENTS UNDER PMFBY

4584.  DR. P.K. BIJU:

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  is  a  delay  in  payments  to  farmers  under  the Pradhan Mantri Fasal Bima Yojana (PMFBY) and if so, the details thereof;
- (b) whether  the  delay  is  caused  by  late  payment  of  premium  to  the  insurance companies by the Union Government and if so, the reasons therefor; and
- (c) whether it is also a fact that the use of modern technology in assessing the yield loss for payment of crop insurance claims has not been properly implemented, which resulted in delay in claim reimbursements 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) & (b) :     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.

The detailed activity-wise seasonality discipline including timelines for settlement of  claims  by  insurance  companies  and  for  release  of  premium  subsidy  by  the  State Governments, have been prescribed in Operational Guidelines of Pradhan Mantri Fasal Bima Yojana (PMFBY) to ensure timely payment of claims to insured farmers.

(c): The  calculation  of  admissible  claims  under  PMFBY  mainly  depends  on  timely and correct reporting of data of Crop Cutting Experiments (CCEs) to assess the losses for  settlement  of  claims.    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  and  transfer  of  claim  amount  directly  to  the  beneficiary  bank account. Penalty has been imposed on the States who are not using smartphones for collection  of  CCE  data.     Penalty  provisions  have  also  been  incorporated  in  Revised Operational Guidelines of the scheme for late release of claims by insurance companies and  for  States  for  late  release  of  their  share  in  premium  subsidy.Further,  number  of CCEs are rationalized/reduced through development of robust statistical model(s) with use of Remote Sensing Technology including satellite/drone images.  Department has entrusted  9  pilot  studies  under  supervision  of  Mahalanobis  National  Crop  Forecast Centre (MNCFC) in this regard.

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