Lok Sabha Question No. 260 (UNSTARRED), answered on 2020-02-04
Subject: Pradhan Mantri Fasal Bima Yojana
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Kirron  Kher

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

## LOK  SABHA UNSTARRED QUESTION NO.260

TO BE ANSWERED ON THE 4 TH  FEBRUARY, 2020

## PRADHAN MANTRI FASAL BIMA YOJANA

## 260.  SHRIMATI KIRRON KHER:

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

- (a) the salient features of Pradhan Mantri Fasal Bima Yojana;
- (b) whether there has been a substantial increase in the crop insurance penetration and if so, the details thereof;
- (c) the steps taken by the Government to decrease the disbursal time of claims to the farmers; and
- (d) the steps taken to enhance the use of technology in agriculture insurance?

## ANSWER

MINISTER  OF AGRICULTURE AND FARMERS WELFARE

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

- (a): The salient features of Pradhan Mantri Fasal Bima Yojana (PMFBY) are annexed.
- (b): Yes Sir.  Penetration under the PMFBY has been increased from 23% of Gross Cropped Area (GCA) under erstwhile schemes during 2015-16 to over 30% of GCA under PMFBY.
- (c): 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.

To bring down the claim settlement time, many steps in addition to regularly monitoring the implementation of PMFBY, has been taken by the Government.    These steps include use of  improved 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 guidelines.

(d): PMFBY  provides  for  use  of  technology  for  better  implementation  of  the  scheme. Accordingly,  National  Crop  Insurance  Portal  (NCIP)  has  been  developed  for  ensuring  better administration, co-ordination, transparency, dissemination of information and  delivery of services including uploading/obtaining details of individual insured farmers for better monitoring and to ensure transfer of claim amount electronically to the individual farmer's Bank Account. To ensure timely  payment of  claims, scheme envisages mandatory use of smartphone/CCEAgri App for real time transfer of data on national crop insurance portal. Farmers'app has also been launched, on which farmers can track their crop insurance and get all information about it.

Further,  the  Department  of  Agriculture,  Cooperation  and  Farmers  Welfare,  through Mahalanobis National Crop Forecast Centre (MNCFC) had carried out pilot studies for Smart Sampling  Technique/Optimization  of  Crop  Cutting  Experiments  (CCEs)  in  various  States involving  8 agencies/ organizations during Kharif 2018 and Rabi 2018-19 under PMFBY.   The review  of  these  pilot  studies  was  carried  out  by  High  Level  Committee  constituted  for  the purpose.

Accordingly, based on these results and the technologies which were verified during the Pilot  studies,  the  Government  rolled  out  Smart  Sampling  Technique  (CCE  location  selection using satellite data) and optimization of CCEs, in 96 districts of 9 States, for rice crop, during Kharif, 2019. Around 1 lakh CCEs for Rice crop are conducted, during Kharif 2019, using Smart Sampling Technique.

Pilot  studies  have  been  undertaken  for  estimation  of  yield  at  Gram  Panchayat  level, during  Kharif  2019,  through  12  agencies,  by  use  of  technology  (Satellite  data,  UAV,  Artificial Intelligence,  Machine  Learning,  etc.).      As  soon  as  statistically  sound  methodology  for  yield estimaton through technology is established for the crop, the same may be adopted.

## Salient Features of PMFBY

- i) Provides  comprehensive  insurance  coverage  against  crop  loss  on  account  of  nonpreventable  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 Burst and Natural Fire and post harvest losses due to cyclone, cyclonic rain and hailstorm.
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,  coordination, 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.

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