Lok Sabha Question No. 1287 (UNSTARRED), answered on 2021-07-27
Subject: Pending PMFBY Claims
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Diya Kumari

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

## LOK SABHA UNSTARRED QUESTION NO. 1287

TO BE ANSWERED ON THE 27 TH   JULY, 2021

## PENDING PMFBY CLAIMS

1287 MS. DIYA KUMARI:

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

(a)  the  details  of  the  coverage  of  farmers,  crops,  sum  insured  and  exclusions  under Pradhan Mantri Fasal Bima Yojana (PMFBY);

(b)  whether  the  Government  is  aware  of  delays  in  payment  of  the  sum  insured  by  the insurance companies to the farmers in case of crop damage;

(c)  if  so,  the  measures  taken  by  the  Government  to  ensure  smooth  payment  of compensation to farmers and the action taken against insurance companies in case they fail to do so; and

(d) the list of pending claims under this scheme for the last three years, State-wise along with district-wise data for the State of Rajasthan and details on when these pending claims are likely to be settled?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

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

(a) : The Pradhan Mantri Fasal Bima Yojana (PMFBY) envisages coverage of all farmers whether loanee, non-laonee, sharecroppers, tenant farmers growing notified crops in the notified areas by concerned State Government.  Similarly, all crops whether foodgrains, oilseeds, pulses, commercial/horticultural crops can be notified by the State Government under  the  scheme  subject  to  availability  of  past  yield  data  and  capacity  of  the  State Government to conduct requisite number of crop cutting experiments as per provisions of the scheme. Other crops for which past yield data or the scientific method of CCEs to know the yield is not available can be notified under Restructured Weather Based Crop Insurance Scheme (RWBCIS).

State Government can choose scale of finance or value of notional average yield for the benefit of the farmers.   The scheme provides comprehensive risk insurance against all non-preventable natural risks from pre-sowing to post-harvest losses for the crops and areas notified by the concerned State Government.   War/warlike perils and nuclear risk are excluded under the scheme.

(b) to (d) : 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 subject to receipt of 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,  nonreceipt of account details of some farmers for transfer of claims to the bank account of eligible farmers and NEFT related issues, etc.

As per Operational Guidelines of the scheme, companies are selected for specific cluster (Group  of  districts)  to  distribute  the  risk  evenly  by  the  concerned  State  Governments through competitive bidding process.  L-1 premium quoting companies are selected for different  clusters  by  the  State  Government.  Most  of  the  companies  raised  issues regarding  non-receipt  of/  sub-standard  yield  data  or  non-receipt  of  State  Government share in premium subsidy from State Government etc.

However, this Department is regularly monitoring the implementation of PMFBY including timely 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 the revised/revamped operational guidelines of the scheme.  Insurance companies have to pay penal interest @12% per annum to the farmers for the period beyond the stipulated one month of receipt of yield data from the State Government.

To resolve the technical disputes between insurance companies and other stakeholders including  States,  Technical  Advisory  Committee  (TAC)  at  Centre  level  and  State Technical Advisory Committees (STAC) at State level have also been constituted under the scheme.

Non  receipt  of  State  share  of  premium  subsidy  is  the  primary  reason  for  delayed settlement of claims.

State-wise details of pending claims under the scheme for the last three years are given in Annexure .

District-wise details of claims pending in Rajasthan are given below :

| District Name   | Claims Outstanding - 2017-18 (Rs. crore)   |   Claims Outstanding - 2018-19 (Rs. crore) | Claims Outstanding - 2019-20 (Rs. crore)   |
|-----------------|--------------------------------------------|--------------------------------------------|--------------------------------------------|
| Alwar           | NIL                                        |                                      0.006 | NIL                                        |
| Bundi           | NIL                                        |                                      0.025 | NIL                                        |
| Jhalawar        | NIL                                        |                                      0.125 | NIL                                        |
| Jodhpur         | NIL                                        |                                      1.681 | NIL                                        |
| Sri Ganganagar  | NIL                                        |                                      0.941 | NIL                                        |
| GRAND TOTAL     | NIL                                        |                                      2.778 | NIL                                        |

No claims are pending in other districts of Rajasthan.

Annexure

| State Wise Farmers Benefitted, Sum Insured and Claims Outstanding under PMFBY for previous 3 years as on 22.07.2021   | State Wise Farmers Benefitted, Sum Insured and Claims Outstanding under PMFBY for previous 3 years as on 22.07.2021   | State Wise Farmers Benefitted, Sum Insured and Claims Outstanding under PMFBY for previous 3 years as on 22.07.2021   | State Wise Farmers Benefitted, Sum Insured and Claims Outstanding under PMFBY for previous 3 years as on 22.07.2021   |
|-----------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|
| State/UT Name                                                                                                         | Claims Outstanding - 2017-18 (Rs. crore)                                                                              | Claims Outstanding - 2018-19 (Rs. crore)                                                                              | Claims Outstanding - 2019-20 (Rs. crore)                                                                              |
| A & N Islands                                                                                                         | NIL                                                                                                                   | 0.1                                                                                                                   | 0.001                                                                                                                 |
| Andhra Pradesh                                                                                                        | 3.7                                                                                                                   | 4.9                                                                                                                   | 7.0                                                                                                                   |
| Assam                                                                                                                 | 0.002                                                                                                                 | 0.003                                                                                                                 | 17.3                                                                                                                  |
| Chhattisgarh                                                                                                          | 0.1                                                                                                                   | NIL                                                                                                                   | 12.8                                                                                                                  |
| Gujarat                                                                                                               | 0.9                                                                                                                   | 0.2                                                                                                                   | 243.2                                                                                                                 |
| Haryana                                                                                                               | NIL                                                                                                                   | 6.8                                                                                                                   | 8.9                                                                                                                   |
| Himachal Pradesh                                                                                                      | NIL                                                                                                                   | 0.0001                                                                                                                | 6.6                                                                                                                   |
| Jammu & Kashmir                                                                                                       | NIL                                                                                                                   | NIL                                                                                                                   | NIL                                                                                                                   |
| Jharkhand                                                                                                             | NIL                                                                                                                   | 663.8                                                                                                                 | 25.5                                                                                                                  |
| Karnataka                                                                                                             | NIL                                                                                                                   | 59.4                                                                                                                  | 149.0                                                                                                                 |
| Kerala                                                                                                                | NIL                                                                                                                   | 0.004                                                                                                                 | 32.5                                                                                                                  |
| Madhya Pradesh                                                                                                        | NIL                                                                                                                   | 0.5                                                                                                                   | 95.5                                                                                                                  |
| Maharashtra                                                                                                           | 1.3                                                                                                                   | 6.3                                                                                                                   | 9.1                                                                                                                   |
| Manipur                                                                                                               | NIL                                                                                                                   | NIL                                                                                                                   | 0.0003                                                                                                                |
| Odisha                                                                                                                | 1.6                                                                                                                   | NIL                                                                                                                   | 48.3                                                                                                                  |
| Puducherry                                                                                                            | NIL                                                                                                                   | 0.005                                                                                                                 | 7.2                                                                                                                   |
| Rajasthan                                                                                                             | NIL                                                                                                                   | 2.8                                                                                                                   | NIL                                                                                                                   |
| Tamil Nadu                                                                                                            | 1.5                                                                                                                   | 0.01                                                                                                                  | 1.2                                                                                                                   |
| Telangana                                                                                                             | NIL                                                                                                                   | 438.4                                                                                                                 | 402.3                                                                                                                 |
| Tripura                                                                                                               | NIL                                                                                                                   | NIL                                                                                                                   | 0.04                                                                                                                  |
| Uttar Pradesh                                                                                                         | NIL                                                                                                                   | NIL                                                                                                                   | 24.0                                                                                                                  |
| Uttarakhand                                                                                                           | NIL                                                                                                                   | NIL                                                                                                                   | 0.02                                                                                                                  |
| West Bengal                                                                                                           | 0.5                                                                                                                   | 6.1                                                                                                                   | NIL                                                                                                                   |
| GRAND TOTAL                                                                                                           | 9.6                                                                                                                   | 1,189                                                                                                                 | 1,090                                                                                                                 |

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