Lok Sabha Question No. 321 (UNSTARRED), answered on 2020-02-04
Subject: Settlement of Claims under PMFBY
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Rahul Gandhi

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

## LOK  SABHA

## UNSTARRED QUESTION NO. 321 TO BE ANSWERED ON THE 4 TH  FEBRUARY, 2020

## SETTLEMENT OF CLAIMS UNDER PMFBY

## 321.    SHRI RAHUL GANDHI:

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

- (a) whether undue delay in settlement of claims of insured farmers under the Pradhan Mantri Fasal Bima Yojana (PMFBY) have been reported in several States;
- (b) if so, the reasons therefor and the measures being taken to prevent such delays;
- (c) the details of interest paid by insurance companies and the State Government for delay in settlement of claims, if any, State-wise;
- (d) whether  several  private  insurance  companies  have  opted  out  of  the  Pradhan  Mantri Fasal Bima Yojana for the Rabi and Kharif Seasons 2019-20;
- (e) if so, the details thereof and the reasons therefor; and
- (f) the details of the premium paid by the beneficiaries, State and Centre and the claims filed and settled by the insurers for the last two years, State-wise?

## ANSWER

## MINISTER  OF AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी (SHRI NARENDRA SINGH TOMAR)

(a) & (b) : 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 release  of total State  share  of  premium  subsidy  from  concerned  State  Government  within  time.    However, settlement of claims in some States gets 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 Fund Transfer (NEFT) related issues, etc.  However, this Department  is  regularly monitoring the implementation of  PMFBY  including  timely settlement of claims.

To bring down the claim settlement time, many steps in addition to regularly monitoring the implementation of PMFBY, have been taken by the Government.    These steps include use of  imporved technology, revision of Operational Guidelines wherein provision has been made for timely release of State Govt. share in 3 instalments and settlement of claims by insurance companies without waiting for final/3 rd installment by the States and advancement of 15 days in seasonality  discipline  for  early  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 these guielines.

(c) :      As per the operational guidelines of PMFBY, vide letter dated  September 25, 2019,  an interest penalty of Rs. 3.30 crore, Rs. 0.09 crore, Rs. 0.51 crore, Rs. crore and Rs. 0.16 crore has been imposed on Agriculture Insurance Company of India Ltd., Cholamandalm-MS General Insurance Company  Ltd., ICICI-Lombard General Insurance Company  Ltd., New  India Assurance Company Ltd. and SBI General Insurance Company Ltd. respectively.   In reply they have submitted their explanations requesting for review. A meeting has been called to discuss the explanations submitted by the insurance companies.

Apart from this, State Governments have been advised to impose penalities on insurance companies themselves.  Accordingly, some State governments like Uttar Pradesh, Gujarat and Haryana have also imposed punitive interest on insurance companies and have deducted the interest money.

A letter  has  also  been  issued  to  5  States  namely,  Andhra  Pradesh,  Madhya  Pradesh, Talangana,  Jharkhand  and  Rajasthan  who  defaulted  in  release  of  state  share  of  subsidy reminding them about the provison of penal interest on States.

(d) & (e) : 18 companies including all the 5 public sector companies have been empanelled for implementation of the scheme in country by the Department of Agriculture, Cooperation and Farmers  Welfare.    But  all  the  companies  are  not  participating  in  bidding  process  in  each State/each  season.    During  last  year  i.e.  2019-20  four  companies  namely,  ICICI-Lombard General Insuance Company Ltd., Tata-AIG General Insurance Company Ltd., Cholamandal-MS General  Insurance  Company  Ltd.  and  Shriram  General  Insurance  Compay  Ltd.  have  not participated in fresh bids due to non-availability of reinsurance arrangement and non-approval by their respective Board of Directors etc.

(f) : State-wise details of premium and claims under PMFBY during last two years i.e. 201718 and 2018-19 are given in Annexure .

Annexure

## State-wise details of premium and claims during 2017-18 and 2018-19 under Pradhan Mantri Fasal Bima Yojana (PMFBY)

|                  | (Rs. in Crore)   | (Rs. in Crore)        | (Rs. in Crore)      | (Rs. in Crore)   | (Rs. in Crore)   | (Rs. in Crore)   | (Rs. in Crore)        | (Rs. in Crore)      | (Rs. in Crore)   | (Rs. in Crore)   |
|------------------|------------------|-----------------------|---------------------|------------------|------------------|------------------|-----------------------|---------------------|------------------|------------------|
| State/UT Name    | 2017-18          | 2017-18               | 2017-18             | 2017-18          | 2017-18          | 2018-19          | 2018-19               | 2018-19             | 2018-19          | 2018-19          |
| State/UT Name    | Farmer Premium   | State Premium Subsidy | GOI Premium Subsidy | Gross Premium    | Approved Claims  | Farmer Premium   | State Premium Subsidy | GOI Premium Subsidy | Gross Premium    | Approved Claims* |
| A & N Islands    | 0.007            | 0.011                 | 0.011               | 0.030            | -                | 0.051            | 0.096                 | 0.096               | 0.243            | -                |
| Andhra Pradesh   | 258.683          | 521.230               | 521.230             | 1,301.143        | 730.754          | 302.735          | 524.922               | 524.922             | 1,352.579        | 1,088.801        |
| Assam            | 5.134            | 3.373                 | 3.373               | 11.880           | 1.110            | 5.829            | 3.403                 | 3.403               | 12.635           | 0.093            |
| Bihar            | 177.836          | 424.745               | 424.745             | 1,027.325        | 401.525          | -                | -                     | -                   | -                | -                |
| Chhattisgarh     | 132.884          | 114.491               | 114.491             | 361.866          | 1,388.010        | 161.101          | 364.030               | 364.030             | 889.161          | 1,065.316        |
| Goa              | 0.048            | 0.001                 | 0.001               | 0.051            | 0.005            | 0.033            | 0.000                 | 0.000               | 0.033            | 0.092            |
| Gujarat          | 398.385          | 1,431.532             | 1,431.532           | 3,261.449        | 1,073.747        | 402.556          | 1,369.413             | 1,369.413           | 3,141.382        | 2,600.870        |
| Haryana          | 208.668          | 147.937               | 96.568              | 453.172          | 899.371          | 253.353          | 325.002               | 262.244             | 840.599          | 926.161          |
| Himachal Pradesh | 30.505           | 23.501                | 23.501              | 77.506           | 64.708           | 29.724           | 24.852                | 24.852              | 79.428           | 10.190           |
| Jammu & Kashmir  | 8.997            | 15.988                | 15.988              | 40.972           | 9.810            | 16.886           | 29.899                | 29.899              | 76.683           | 11.360           |
| Jharkhand        | 28.262           | 91.832                | 91.832              | 211.926          | 46.935           | 49.401           | 182.579               | 164.337             | 396.317          | 73.666           |
| Karnataka        | 235.055          | 799.507               | 799.507             | 1,834.068        | 859.168          | 232.592          | 795.153               | 795.153             | 1,822.898        | 2,755.044        |
| Kerala           | 6.333            | 9.770                 | 9.770               | 25.873           | 10.936           | 6.179            | 15.061                | 15.061              | 36.300           | 12.345           |
| Madhya Pradesh   | 820.339          | 2,005.985             | 2,015.319           | 4,841.643        | 5,827.202        | 944.972          | 2,321.559             | 2,321.559           | 5,588.089        | 190.712          |
| Maharashtra      | 508.616          | 1,874.029             | 1,874.029           | 4,256.674        | 3,286.168        | 786.790          | 2,659.379             | 2,659.379           | 6,105.547        | 5,719.894        |
| Manipur          | 0.747            | 0.597                 | 0.597               | 1.941            | 0.670            | 0.104            | 0.052                 | 0.052               | 0.208            | 0.001            |
| Meghalaya        | 1.009            | 0.206                 | 0.206               | 1.421            | 0.017            | 0.090            | 0.005                 | 0.005               | 0.099            | 0.092            |
| Odisha           | 145.063          | 337.630               | 337.630             | 820.324          | 1,779.045        | 168.808          | 454.555               | 454.555             | 1,077.918        | 1,043.608        |

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| Puducherry   | -          | -          | -          | -          | -         | 0.901      | 1.107      | 1.107      | 3.115      | 0.452         |
|--------------|------------|------------|------------|------------|-----------|------------|------------|------------|------------|---------------|
| 501.757      | 1,100.424  | 1,100.424  | 2,702.605  | 2,193.411  | 592.972   | 1,430.132  | 1,430.132  | 3,453.237  | 2,834.478  | Rajasthan     |
| 0.064        | 0.001      | 0.001      | 0.065      | 0.038      | 0.024     | -          | -          | 0.024      | 0.002      | Sikkim        |
| 124.165      | 608.990    | 608.990    | 1,342.144  | 1,978.869  | 121.656   | 650.343    | 650.343    | 1,422.343  | 1,722.183  | Tamil Nadu    |
| 189.298      | 244.739    | 244.739    | 678.776    | 630.962    | 151.175   | 185.663    | 185.663    | 522.500    | 143.079    | Telangana     |
| 0.593        | 0.074      | 0.074      | 0.741      | 0.999      | 0.020     | 0.005      | 0.005      | 0.030      | -          | Tripura       |
| 383.527      | 501.100    | 501.100    | 1,385.727  | 380.478    | 410.543   | 545.633    | 545.633    | 1,501.809  | 449.185    | Uttar Pradesh |
| 18.819       | 24.513     | 24.513     | 67.844     | 39.435     | 20.996    | 27.059     | 27.059     | 75.114     | 72.373     | Uttarakhand   |
| 210.803      | 229.636    | 202.006    | 642.444    | 254.321    | 259.282   | 242.607    | 205.799    | 707.688    | 194.901    | West Bengal   |
| 4,395.596    | 10,511.840 | 10,442.174 | 25,349.610 | 21,857.693 | 4,918.773 | 12,152.507 | 12,034.700 | 29,105.980 | 20,914.898 | GRAND TOTAL   |

*   Claims in respect of some crops/areas for the season Rabi 2018-19 are not approved.

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