Lok Sabha Question No. 57 (STARRED), answered on 2019-06-25
Subject: Enrolment in Crop Insurance Schemes
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: T.N. Prathapan

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

## LOK  SABHA STARRED QUESTION NO. 57

TO BE ANSWERED ON THE   25 TH  JUNE, 2019

## ENROLMENT IN CROP INSURANCE SCHEMES

## *57.     SHRI T.N. PRATHAPAN:

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

- (a) the details of the number of farmers enrolled in the crop insurance scheme, Pradhan Mantri Fasal Bima Yojana (PMFBY) as on date in various States including Kerala;
- (b) whether the Government has decided to make Pradhan Mantri Fasal Bima Yojana voluntary for the loanee farmer and if so, the reasons therefor;
- (c) the steps taken by the Government to avoid fall in the enrolment of farmers under the scheme;
- (d) whether  a  margin  (Premium  minus  compensation  paid)  of  Rs.  15,975  crore  was made by insurance companies in the fiscal years of 2016-17 and 2017-18 under Pradhan Mantri Fasal Bima Yojana across the country and if so, the details thereof;
- (e) whether  it is true that the current structure of the insurance scheme gives undue advantage to the insurance companies to benefit from the State exchequer; and
- (f) if  so,  whether  the  Government is ready to control this and make PMFBY a purely farmers' welfare scheme?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी

(SHRI NARENDRA  SINGH TOMAR)

- (a) to (f): A statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (f) OF LOK SABHA STARRED QUESTION NO. 57 DUE FOR REPLY ON 25 TH  JUNE, 2019.

(a): State-wise details of farmer applicants enrolled during 2018-19 under Pradhan Mantri Fasal Bima yojana (PMFBY) are given in Annexure .

- (b): With a view to provide financial support to farmers and to make them eligible for next crop  at  the  time  of  crop  loss  due  to  natural  calamities,  pests  &  diseases,    the  scheme  is made compulsory  for  the  loanee  farmers  growing  notified  crops  in  notified  areas  and  the scheme is voluntary for non-loanee farmers.  However, requests/representations have been received  from  various  quarters  including  farmer  organizations,  States  etc.  to  make  the scheme voluntary/optional for all farmers.  The revisions/improvements in the crop insurance schemes is a continuous process and decisions on suggestions/representations are taken from time to time after consultation with various stakeholders.
- (c): Government has taken several initiatives including active involvement of all stakeholders  especially  States  and  implementing  insurance  companies  for  conduct  of publicity  campaign/awareness  programmes  including  organization  of  camps  in  the  rural areas  to  build  farmer  awareness  about  crop  insurance  schemes.        Insurance  companies have  been  asked  to  utilize  0.5%  of  gross  premium  collected  by  them  for  publicity  and awareness  generation.    Other  activities  for  awareness  generation  involve  the  publicity  of features and benefits of the scheme through advertisements in leading National/local News Papers,  telecast  through  audio-visual  media,  distribution  of  pamphlets  in  local  languages, participation  in  agriculture  fairs  /  mela  /  goshti,  dissemination  of  SMS  through  Kisan Portal/national  crop  insurance  portal  and  conduct  of  workshops/  trainings    State  officials, financial  institutions  and farmers.  For non-loanee farmers since crop insurance is optional, the Common Service Centres (CSCs)  and  online enrolment have been activated  to provide

-2- the services besides traditional modes like banks and insurance intermediaries.   Due to the efforts  made  by  the  Government  coverage  of  non-loanee,  for  whom  the  coverage  is voluntary,    has  increased  from  5%  under  erstwhile  schemes  to  34%,  which  shows  the acceptability of the scheme on voluntary basis.

Though the  coverage  during  2 nd year  of  implementation  of  PMFBY  was  decreased due  to  announcement  of  loan  waiver  schemes  by  some  State  and  making  Aadhaar compulsory  for  deduplication  of  coverage,  but  due  to  aforesaid  efforts  made  by  the Government coverage has increased during 2018-19.

(d): No, Sir.  In this regard, it is also informed that the difference between premium collected and claims paid is not the margin for the companies.  The cost of reinsurance and  administrative  cost  of  gross  premium  also  has  to  be  borne  by  the  Insurance Companies.

(e):       No Sir. Selection of insurance company is made by the concerned State Government through competitive bidding process and the company quoting the lowest premium rate (L-1) is  selected  for  implementation  of  the  scheme.    Various  checks  and  balances  for  major stakeholders including insurance companies  have been provided in the operational guidelines of    the scheme,    so that    no one can take undue advantage of the scheme. These checks and balances have further been strengthened by imposing penalty provisions on  insurance  companies  for  delay/non-settlement  of  claims.    Provisions  for  performance evaluation of insurance companies with various punitive actions including de-empanelment of  insurance  companies  has  also  been  envisaged  in  revised  Operational  Guidelines implemented w.e.f. Rabi 2018-19 season.

(f): Question does not arise.

| Annexure Details of farmer applicants enrolled under PMFBY during 2018-19   | Annexure Details of farmer applicants enrolled under PMFBY during 2018-19   | Annexure Details of farmer applicants enrolled under PMFBY during 2018-19   | Annexure Details of farmer applicants enrolled under PMFBY during 2018-19   | Annexure Details of farmer applicants enrolled under PMFBY during 2018-19   |
|-----------------------------------------------------------------------------|-----------------------------------------------------------------------------|-----------------------------------------------------------------------------|-----------------------------------------------------------------------------|-----------------------------------------------------------------------------|
| Sl. No.                                                                     | State/UT Name                                                               | Farmer applicants enrolled (in No.)                                         | Farmer applicants enrolled (in No.)                                         | Farmer applicants enrolled (in No.)                                         |
| Sl. No.                                                                     | State/UT Name                                                               | Loanee                                                                      | Non Loanee                                                                  | Total                                                                       |
| 1                                                                           | A & N Islands                                                               | 617                                                                         | 103                                                                         | 720                                                                         |
| 2                                                                           | Andhra Pradesh                                                              | 1,675,076                                                                   | 82,796                                                                      | 1,757,872                                                                   |
| 3                                                                           | Assam                                                                       | 30,903                                                                      | 37,246                                                                      | 68,149                                                                      |
| 4                                                                           | Chhattisgarh                                                                | 1,342,132                                                                   | 229,037                                                                     | 1,571,169                                                                   |
| 5                                                                           | Goa                                                                         | 341                                                                         | 3                                                                           | 344                                                                         |
| 6                                                                           | Gujarat                                                                     | 2,151,370                                                                   | 7,807                                                                       | 2,159,177                                                                   |
| 7                                                                           | Haryana                                                                     | 1,404,667                                                                   | 61,029                                                                      | 1,465,696                                                                   |
| 8                                                                           | Himachal Pradesh                                                            | 260,453                                                                     | 9,552                                                                       | 270,005                                                                     |
| 9                                                                           | Jammu & Kashmir                                                             | 153,951                                                                     | 2,688                                                                       | 156,639                                                                     |
| 10                                                                          | Jharkhand                                                                   | 204,578                                                                     | 1,090,174                                                                   | 1,294,752                                                                   |
| 11                                                                          | Karnataka                                                                   | 890,988                                                                     | 1,118,775                                                                   | 2,009,763                                                                   |
| 12                                                                          | Kerala                                                                      | 47,550                                                                      | 9,616                                                                       | 57,166                                                                      |
| 13                                                                          | Madhya Pradesh                                                              | 6,638,919                                                                   | 408,884                                                                     | 7,047,803                                                                   |
| 14                                                                          | Maharashtra                                                                 | 1,750,966                                                                   | 12,363,349                                                                  | 14,114,315                                                                  |
| 15                                                                          | Manipur                                                                     | 1,315                                                                       | 137                                                                         | 1,452                                                                       |
| 16                                                                          | Meghalaya                                                                   | 693                                                                         | -                                                                           | 693                                                                         |
| 17                                                                          | Odisha                                                                      | 1,787,654                                                                   | 288,608                                                                     | 2,076,262                                                                   |
| 18                                                                          | Puducherry                                                                  | 887                                                                         | 9,859                                                                       | 10,746                                                                      |
| 19                                                                          | Rajasthan                                                                   | 6,612,860                                                                   | 21,086                                                                      | 6,633,946                                                                   |
| 20                                                                          | Sikkim                                                                      | 210                                                                         | 31                                                                          | 241                                                                         |
| 21                                                                          | Tamil Nadu                                                                  | 947,395                                                                     | 1,098,404                                                                   | 2,045,799                                                                   |
| 22                                                                          | Telangana                                                                   | 680,785                                                                     | 96,088                                                                      | 776,873                                                                     |
| 23                                                                          | Tripura                                                                     | 65                                                                          | 2,049                                                                       | 2,114                                                                       |
| 24                                                                          | Uttar Pradesh                                                               | 5,767,021                                                                   | 216,126                                                                     | 5,983,147                                                                   |
| 25                                                                          | Uttarakhand                                                                 | 160,686                                                                     | 30,763                                                                      | 191,449                                                                     |
| 26                                                                          | West Bengal                                                                 | 2,996,417                                                                   | 2,609,114                                                                   | 5,605,531                                                                   |
|                                                                             | Grand Total                                                                 | 35,508,499                                                                  | 19,793,324                                                                  | 55,301,823                                                                  |

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