Lok Sabha Question No. 3489 (UNSTARRED), answered on 2019-12-10
Subject: Benefits of PMFBY
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Pashupati Nath Singh, Sadashiv Kisan Lokhande

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

## LOK  SABHA UNSTARRED QUESTION NO.3489

TO BE ANSWERED ON THE 10 TH   DECEMBER, 2019

## BENEFITS OF PMFBY

3489. SHRI PASHUPATI NATH SINGH: SHRI SADASHIV KISAN LOKHANDE:

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

- (a) whether  the  farmers  are  not  provided  with  the  benefits  of  Pradhan  Mantri  Fasal  Bima Yojana in time due to some reasons;
- (b) if so, the efforts made by the Government to remove the said reasons; and
- (c) the outcome thereof along with the reaction of the Government thereto?

## ANSWER

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

(a) to (c): Pradhan Mantri Fasal Bima Yojana (PMFBY) is available for all farmers both loanee and  non-loanee.  However,  the  scheme  is  optional  for  the  States.    The  concerned  State Government notifies the crops and areas under the Scheme.  The Scheme is compulsory for loanee  farmers  availing  seasonal  agricultural  operation  loans/Kisan  Credit  Card  loans  for notified crops/areas and voluntary for other farmers.

Out  of  the  total  number  of  farmer  applicants  covered  under  the  scheme  over  80% farmers  are  small  and  margial  farmers.    Year-wise  details  of  subsidized  number  of  farmers covered under the scheme, farmers who got claims on loss of their crops  and amount of claims are given in following table :

| Season         | No. of Farmer Applicants (in lakhs)   | Farmer applicants who got claims (in lakhs)   | Amount of Claims Paid (Rs. in crores)   |
|----------------|---------------------------------------|-----------------------------------------------|-----------------------------------------|
| 2016-17        | 580.60                                | 148.40                                        | 16662                                   |
| 2017-18        | 527.10                                | 174.30                                        | 21743                                   |
| 2018-19        | 563.90                                | 165.10                                        | 18921*                                  |
| * Provisional. | * Provisional.                        | * Provisional.                                | * Provisional.                          |

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. 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  Fund  Transfer  (NEFT)  related  issues,  etc.    However,  this  Department  is regularly monitoring the implementation of PMFBY including timely settlement of claims.

Further,  with  a  view  to  ensure  better  transparency,  accountability,   timely  payment  of claims  to  the  farmers  and  to  make  the  scheme  more  farmer  friendly,  Government  has comprehensively revised the Operational Guidelines of the Pradhan Mantri Fasal Bima Yojana (PMFBY) which have become effective from Rabi 2018-19.   To ensure optimal coverage under the scheme, the following provisions, which will facilitate early settlement of claims, making the scheme  even  more  farmer  friendly,  have,  inter-alia,    been  made  in  the  Revised  Operational Guidelines:-

- (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.
- (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) Time for intimation of loss due to localized calamities and post-harvest losses has been increased from 48 hours to 72 hours.
- (v) Stratified grievance redressal mechanism  viz.  District Level Grievance Redressal Committee (DGRC), State Level Grievance Redressal Committee (SGRC).

********