Lok Sabha Question No. 2399 (UNSTARRED), answered on 2021-08-03
Subject: Methodology for Crop Insurance
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Jayadev Galla

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

## LOK SABHA

## UNSTARRED QUESTION NO. 2399

TO BE ANSWERED ON THE 3 RD  AUGUST, 2021

## METHODOLOGY FOR CROP INSURANCE

2399. SHRI JAYADEV GALLA:

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

(a) details of the methodology fixed by the Ministry for insurance companies to fix unit of loss at Gram Sabha level for the majority of crops;

- (b) whether the Ministry intends to remedy present rules for insurance companies; (c) if so, the details thereof and if not, the reasons therefor; (d) whether the Ministry is planning to change the threshold limit which is ascribed for the maximum claim in the event of crop loss; (e)  whether  the  Government  can  list  parameters  that  are  adopted  for  deciding insurance claims by insurance companies for any particular region; (f) the number of applicants benefited from Pradhan Mantri Fasal Bima Yojana in Andhra Pradesh during the last three years, district-wise, and year-wise; and (g)  the  details  of  the  beneficiaries  who  applied  for  insurance  claim  and  the  time
- within which the amount was disbursed settled?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

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

- (a) to (g) : As per provisions of Pradhan Mantri Fasal Bima Yojana (PMFBY), the final/season  end  claims  are  calculated  and  paid  on  the  basis  of  percentage shortfall in yield - if 'Actual Yield' per hectare of insured crop for the insurance unit (calculated  on  the  basis  of  yield  data  from  requisite  number  of  Crop  Cutting Experiments-CCEs) in insured season, falls short of 'Threshold Yield', all insured farmers growing that crop in the defined area are deemed to have suffered shortfall of  similar  magnitude  in  yield  and  claims  per  hectare  are  worked  out  as  per following formula :

## Threshold Yield (TY) - Actual Yield (AY)

## ----------------------------------------------------  X  Sum Insured

## Threshold Yield (TY)

(Threshold Yield (TY) is calculated by taking moving average of best 5 years out of 7 years)

Further,  immediate  relief  is  also  provided  to  insured  farmers  in  case  of  adverse seasonal conditions (mid-season adversity) during the crop season, if the expected yield during the season is likely to be less than 50% of the Threshold Yield in the concerned insurance unit.   Amount payable is 25% of the likely claims subject to adjustment against  final  claims  based  on  yield  assessment  data  arrived  through CCEs.

However,  losses  due  to  localized  risks  of  hailstorm,  landslide,  inundation,  cloud burst  &  natural  fire  and  post-harvest  losses  due  to  cyclone,  cyclonic/unseasonal rains and hailstorm for a specified period of 14 days after harvest are calculated on individual  insured  farm  basis  on  inspection  by  a  Committee  constituted  by  the concerned State Government comprising State officials and officials from insurance companies and loss assessors.  Also, there  is a provision to pay claims towards  prevented  sowing/failed  germination  and  adhoc  claims  in  case  of  mid season adversity.

Revisions/improvements in the crop insurance schemes is a continuous process. Based on the experience gained, views of various stakeholders and 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  and  revamped  the  Operational  Guidelines  of  the  Pradhan  Mantri  Fasal Bima Yojana (PMFBY) with effect from Rabi 2018 and Kharif 2020 respectively to ensure the targeted delivery of benefits of the scheme to the farmers adequately and timely.

Rationalization of methodology for calculation of Threshold Yield (TY) to calculate Threshold  Yield  by  taking  moving  average  of  best  5  out  of  7  years  instead removing two calamities hit years  out  of  7  years  yield  earlier  had  been  made  in Revised Operational Guidelines w.e.f. from Rabi 2018-19.

District-wise  details  of  number  of  farmer  applications  enrolled,  hence  eligible  for benefit of premium subsidy in Andhra Pradesh during last three years i.e. 2018-19 to 2020-21 are given in Annexure .

Annexure

| Number of farmer applicants benefited with premium subsidy from Pradhan Mantri Fasal Bima Yojana in Andhra Pradesh during the last three years, district-wise, and year-wise as on 28.07.2021   | Number of farmer applicants benefited with premium subsidy from Pradhan Mantri Fasal Bima Yojana in Andhra Pradesh during the last three years, district-wise, and year-wise as on 28.07.2021   | Number of farmer applicants benefited with premium subsidy from Pradhan Mantri Fasal Bima Yojana in Andhra Pradesh during the last three years, district-wise, and year-wise as on 28.07.2021   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| District Name                                                                                                                                                                                   | 2018-19                                                                                                                                                                                         | 2019-20 (Only for Kharif 2019)* (Provisional)                                                                                                                                                   |
| Anantapur                                                                                                                                                                                       | 6,72,110                                                                                                                                                                                        | 9,47,581                                                                                                                                                                                        |
| Chittoor                                                                                                                                                                                        | 80,318                                                                                                                                                                                          | 83,835                                                                                                                                                                                          |
| East Godavari                                                                                                                                                                                   | 1,76,679                                                                                                                                                                                        | 2,43,794                                                                                                                                                                                        |
| Guntur                                                                                                                                                                                          | 40,820                                                                                                                                                                                          | 2,29,733                                                                                                                                                                                        |
| Krishna                                                                                                                                                                                         | 90,237                                                                                                                                                                                          | 1,52,235                                                                                                                                                                                        |
| Kurnool                                                                                                                                                                                         | 3,02,840                                                                                                                                                                                        | 4,42,752                                                                                                                                                                                        |
| Prakasam                                                                                                                                                                                        | 1,59,732                                                                                                                                                                                        | 3,72,278                                                                                                                                                                                        |
| Sri Potti Sriramulu Nellore                                                                                                                                                                     | 44,767                                                                                                                                                                                          | 1,00,653                                                                                                                                                                                        |
| Srikakulam                                                                                                                                                                                      | 1,95,637                                                                                                                                                                                        | 4,40,741                                                                                                                                                                                        |
| Visakhapatnam                                                                                                                                                                                   | 36,181                                                                                                                                                                                          | 1,93,711                                                                                                                                                                                        |
| Vizianagaram                                                                                                                                                                                    | 91,471                                                                                                                                                                                          | 2,00,514                                                                                                                                                                                        |
| West Godavari                                                                                                                                                                                   | 1,64,203                                                                                                                                                                                        | 2,40,515                                                                                                                                                                                        |
| Y.S.R.                                                                                                                                                                                          | 4,30,653                                                                                                                                                                                        | 4,50,934                                                                                                                                                                                        |
| Andhra Pradesh Total                                                                                                                                                                            | 24,85,648                                                                                                                                                                                       | 40,99,276                                                                                                                                                                                       |

* Andhra Pradesh has not implemented PMFBY since Rabi 2019-20

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