Lok Sabha Question No. 52 (UNSTARRED), answered on 2018-12-11
Subject: Pradhan Mantri Fasal Bima Yojana
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: OM PRAKASH YADAV

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

## LOK  SABHA UNSTARRED QUESTION NO. 52

TO BE ANSWERED ON THE 11 TH  DECEMBER, 2018

## PRADHAN MANTRI FASAL BIMA YOJANA

52. SHRI OM PRAKASH YADAV:

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

- (a) whether  the  Government  has  any  action  plan  to  make  Pradhan  Mantri  Fasal  Bima Yojana mandatory in order to make it more effective;
- (b) if so, the details thereof; and
- (c) if not, the steps being taken by the Government to collect a comprehensive data of every farm and to fix accountability of insurance companies and banks?

## 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) to (c) : As per the approved implementation pattern of Pradhan Mantri Fasal Bima Yojana (PMFBY), the State Governments have the choice to opt for implementation of the scheme in the respective State. In the States opting for implementation of the scheme, enrolment of those farmers  who  are  availing  Seasonal  Agricultural  Operations  (SAO)  loans  /  Kisan  Credit  Card (KCC)  loans, is mandatory  in respect of the crops and  areas notified by the State Government. For the remaining farmers of these States, the scheme is voluntary. Government does not propose to modify the existing implementation pattern of the scheme.

However,  in  order  to  make  the  scheme  more  effective  and  for  integration  of  all stakeholders  on  one  platform,  Government  has  developed  National  Crop  Insurance  Portal (NCIP) and is collecting individual farmers data from Kharif 2017 season. Further, with a view to ensure  better  transparency,  accountability  and  timely  payment  of  claims  to  the  farmers, Government has comprehensively revised the Operational Guidelines of the scheme recently which, inter-alia, include the following:

(i) Provision of 12% interest rate per annum to be paid by the Insurance Company to farmers  for  delay  in  settlement  claims  beyond  10  days  of  prescribed  cut-off  date  for payment of claims.

ii) State Government have to pay 12% interest rate for delay in release of State share of Subsidy  beyond  three  months  of  prescribed  cut-off  date/submission  of  requisition  by Insurance Companies.

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(iii) Rationalization of methodology for calculation of Threshold Yield (TY) to calculate claims - Moving average of best 5 out of 7 years to be taken for calculation.

(iv) Stratified grievance redressal mechanism viz. District Level Grievance Redressal Committee (DGRC), State Level Grievance Redressal Committee (SGRC).

(v) Detailed plan for publicity and awareness - 0.5%of Gross premium per company per season earmarked for the purpose.

(vi) Increase in risk coverage by inclusion of risks of cloud burst and natural fire under localized calamities and hailstorm under post-harvest losses.

(vii) Increased time for change of crop name for insurance - upto 2 working days prior to cut-off date for emolment instead of earlier provision of 1 month before cut off date.

(viii) Time for intimation of loss due to localized calamities and post-harvest losses has been increased from 48 hours to 72 hours.

(ix) Detailed  Standard  Operating Procedures  (SOPs) for  settlement  of  claims  under localized  calamities,  post  harvest  losses,  mid-season  adversity  and  prevented  sowing and redressal of disputes regarding yield data including add on features.

(x) Inclusion of perennial crops and add on coverage for damage by wild animals on pilot basis.

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