Lok Sabha Question No. 435 (UNSTARRED), answered on 2020-09-15
Subject: Compensation for Crop Damage
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Krupal Balaji Tumane, Omprakash Bhupalsinh alias Pawan Rajenimbalkar

O.I.H.

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

## LOK  SABHA UNSTARRED QUESTION NO.435

TO BE ANSWERED ON THE  15 TH  SEPTEMBER, 2020

## COMPENSATION FOR CROP DAMAGE

435.   SHRI KRUPAL BALAJI TUMANE: SHRI OMPRAKASH BHUPALSINH ALIAS PAWAN RAJENIMBALKAR:

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

- (a) the details of the unit  on  which  crop  insurance  is  fixed  and  the  amount  of compensation provided under various crop insurance schemes;
- (b) the  details  of  the  extent  to  which  insurance  companies  compensate  the  loss  of  the farmers in the event of destruction of crops due to natural disasters;
- (c) whether the farmers have been provided compensation under various crop insurance schemes for damage to crops due to hailstorms, excessive rains and storms during the last three years and the details of the situation in Maharashtra; and
- (d) if  not,  the  reasons  therefor  and  the  time  limit  fixed  for  providing  compensation  to farmers under various crop insurance schemes?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

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

(a) to (d) : Pradhan Mantri Fasal Bima Yojana (PMFBY) is being implemented since Kharif 2016 in  the  country  on  area  approach  basis  for  wide-spread  calamities  like  drought,  flood etc.,  which affect large areas.  However, to lower the basis risk the unit for assessment of crop loss for major crops has been reduced to village/village Panchayat level. Further, the scheme also envisages coverage of    localized risks such as hailstorm, landslide, inundation, natural fire and cloud burst and post-harvest losses  due to cyclonic rains, unseasonal rains and  hailstorm,  which  affects  comparatively  smaller  areas/plots  and  assessment  of  crop losses is made on individual farm level.  It is the endevour of the Government to lower the insurance unit for assessment of crop yield/losses with use of technology.

As per scheme provisions, farmers are indemnified to the extent/percentage of crop losses against the defined Threshold Yield multiplied by sum insured as decided by the State Government.   Claim amount for wide spread calamites are calculated based on the yield data arrived  from requisite  number of Crop Cutting Experiments (CCEs) conducted by the concerned State Government.  Claims per hectare are worked out as per following formula:

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Where Threshold Yield for a crop in a notified insurance unit is the average yield of best 5 years out of past seven years multiplied by applicable indemnity level for that crop.

Further,  there    is  also  a  provision  to  pay  claims  towards  prevented  sowing/failed germination and adhoc claims in case of mid season adversity to the insured farmers.

Major part the scheme is being implemented on Area Approach basis and claims are worked  out  as  per  above  formula  based  on  the  season  end  yield  data  submitted  by  the concerned State Governemnt, therefore, reasons for crop loss/ claims are not looked into. Hence, reasonwise details i.e. due to flood, drought, excessive rainfall,  etc., of claims are not maintained  for  wide  spread  calamities  under  the  scheme.        However,    separate  data  for losses due localized calamities including hailstorm as stated above is maintained separately.

Year-wise details of claims paid to insured farmers on account of crop losses due to natural calamities including hailstorm, excessive rains and storms under PMFBY since 201617 in the country and Maharashtra State are given  as under  :

(Rs. in crore)

| Year                   |   Claims Paid (All India) |   Claims Paid in Maharashtra |
|------------------------|---------------------------|------------------------------|
| 2016-17                |                     16751 |                         2317 |
| 2017-18                |                     22054 |                         3287 |
| 2018-19 (Provisional)  |                     26672 |                         5949 |
| 2019-20* (Provisional) |                     13893 |                         5726 |

* Most of the claims for Rabi 2019-20 and some claims for Kharif 2019 not fully reported.

As per provisions of 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, DAC&FW is regularly monitoring the implementation of PMFBY including timely settlement of claims.