Lok Sabha Question No. 4569 (UNSTARRED), answered on 2023-03-28
Subject: Compensation under PMFBY
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Brijendra Singh, Omprakash Bhupalsinh alias Pawan Rajenimbalkar

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

## LOK SABHA UNSTARRED QUESTION NO. 4569

TO BE ANSWERED ON THE 28 TH  MARCH, 2023

## COMPENSATION UNDER PMFBY

4569.  SHRI BRIJENDRA SINGH:

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) whether the Pradhan Mantri Fasal Bima Yojana (PMFBY) is being implemented to compensate the farmers of the country for the loss of their crops and if so, the number of States in the country where this Yojana is operational along with details thereof;
- (b) whether the Government has been able to pay the compensation on a timely manner and if not, whether there is any mechanism in place to ensure timely payment of insurance;
- (c) whether  the  Government  proposes  to  change  the  premium  rates  and  if  not,  the reasons therefor;
- (d) the amount of premium paid to the concerned companies by the farmers and the Government under the said scheme from the year 2014 to 2022;
- (e) the  number  of  the  companies  that  paid  compensation  amount  to  eligible  farmers under this scheme from 2014 to 2022, amount-wise and State-wise; and
- (f) the current Government  policy regarding cancellation of empanelled  private insurance companies under the above Yojana?

## ANSWER

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

- (a) :  To  provide financial support to farmers against the crop yield losses due to natural risks/calamities, adverse weather conditions, pests & diseases etc. Pradhan Mantri Fasal Bima Yojana (PMFBY) is under implementation in the country since Kharif 2016 season.   27

States/Union Territories (UTs) have implemented the scheme in one or more seasons.  At present,  Andaman  &  Nicobar  Islands,  Andhra  Pradesh,  Assam,  Chhattisgarh,  Goa, Haryana, Himachal Pradesh, Karnataka, Kerala,  Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Odisha,  Puducherry, Rajasthan,  Sikkim, Tamil Nadu, Tripura, Uttar Pradesh and Uttarakhand are implementing the Scheme.

- (b) : Though timelines for each activity including settlement of claims are provided in the Operational  Guidelines  of  PMFBY,  settlement  of  few  claims  in  some  States  got  slightly delayed due to reasons like delayed transmission of yield data and late release of State share  in  premium  subsidy  by  the  States,  yield  related  disputes  between  insurance companies and States, non-receipt of account details of some farmers for transfer of claims to the bank account of eligible farmers and National Electronic Fund Transfer (NEFT) related issues, erroneous/incomplete entry of individual farmers data on National Crop Insurance Portal (NCIP), delay in remittance of farmers share of premium/non-remittance of farmers share of premium to concerned insurance company etc.
- (c) : Actuarial/bidded premium rates are charged by insurance companies but the farmers have to pay maximum 2% for Kharif, 1.5% for Rabi food and oilseed crops and 5% for commercial/horticultural crops and the balance of actuarial/bidded premium is shared by the Central and State Government on 50 : 50 basis and 90 :10 in case of North Eastern States from Kharif 2020 season as per provisions of the scheme.  At present, no proposal regarding change in farmers share in premium is under consideration before the Government.
- (d) : The scheme is under implementation since 2016.  Year-wise details of premium paid by farmers and Government to the insurance companies from 2016-17 to 2021-21 under the scheme is given below :
- (e) : Year-wise details of claims paid by the insurance companies to farmers from inception of the scheme in 2016-17 to 2021-22 are given in Annexure .

| Year      | Farmer Premium   | GOI Premium    | State Premium   |
|-----------|------------------|----------------|-----------------|
|           | (Rs. in crore)   | (Rs. in crore) | (Rs. in crore)  |
| 2016-2017 | 4085.09          | 8648.68        | 8944.61         |
| 2017-2018 | 4172.00          | 10055.87       | 10239.82        |
| 2018-2019 | 4694.29          | 12316.75       | 12676.57        |
| 2019-2020 | 4482.20          | 13525.90       | 14321.10        |
| 2020-2021 | 4045.27          | 13033.73       | 14620.16        |
| 2021-2022 | 3703.81          | 12577.41       | 13947.86        |

(f) :  As per provisions of revamped Operational Guidelines of the scheme performance of implementing insurance companies  in terms of ascertaining the company's  skills, commitment and efficiencies for providing cost effective and efficient insurance services to farmers  is  to  be  closely  monitored  by  the  concerned  Nodal  Department  of  the  State Government.  For  the  purpose,  a  detailed  performance  evaluation  matrix  containing  key performance indicators with assigned weightage has been worked out and is as given in Operational Guidelines. Once the Performance Evaluation report has been accepted and finalized after validation by the Central Government, the corresponding actions like showcause notice, penalty or de-empanelment of the company is to be taken by the Ministry along with similar actions by the Nodal Department of the state.

## Annexure

(Rs. in crore)

| Details of State wise Claims from 2016-2017 to 2021-2022   | Details of State wise Claims from 2016-2017 to 2021-2022   | Details of State wise Claims from 2016-2017 to 2021-2022   | Details of State wise Claims from 2016-2017 to 2021-2022   | Details of State wise Claims from 2016-2017 to 2021-2022   | Details of State wise Claims from 2016-2017 to 2021-2022   | Details of State wise Claims from 2016-2017 to 2021-2022   |
|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|
| State/UT                                                   | 2016-2017                                                  | 2017-2018                                                  | 2018-2019                                                  | 2019-2020                                                  | 2020-2021                                                  | 2021-2022                                                  |
| A & N Islands                                              | 0.146                                                      | 0.000                                                      | 0.088                                                      | 0.000                                                      | 0.000                                                      | 0.000                                                      |
| Andhra Pradesh                                             | 944.37                                                     | 740.05                                                     | 1890.37                                                    | 1253.33                                                    | NI                                                         | NI                                                         |
| Assam                                                      | 5.37                                                       | 1.22                                                       | 2.68                                                       | 89.07                                                      | 112.48                                                     | 0.00                                                       |
| Bihar                                                      | 347.85                                                     | 401.52                                                     | NI                                                         | NI                                                         | NI                                                         | NI                                                         |
| Chhattisgarh                                               | 159.97                                                     | 1391.38                                                    | 1087.29                                                    | 1302.08                                                    | 884.05                                                     | 1396.20                                                    |
| Goa                                                        | 0.03                                                       | 0.01                                                       | 0.10                                                       | 0.01                                                       | 0.00                                                       | 0.00                                                       |
| Gujarat                                                    | 1267.22                                                    | 1075.83                                                    | 2777.88                                                    | 111.68                                                     | NI                                                         | NI                                                         |
| Haryana                                                    | 298.17                                                     | 896.78                                                     | 948.07                                                     | 937.72                                                     | 1160.46                                                    | 1651.79                                                    |
| Himachal Pradesh                                           | 45.26                                                      | 64.71                                                      | 55.01                                                      | 67.50                                                      | 44.54                                                      | 12.77                                                      |
| Jammu & Kashmir                                            | NI                                                         | 9.82                                                       | 23.64                                                      | 0.00                                                       | 0.00                                                       | 54.52                                                      |
| Jharkhand                                                  | 31.09                                                      | 47.18                                                      | 19.82                                                      | 0.00                                                       | 0.00                                                       | 0.00                                                       |
| Karnataka                                                  | 2093.84                                                    | 856.79                                                     | 2986.69                                                    | 1498.87                                                    | 1020.47                                                    | 1452.75                                                    |
| Kerala                                                     | 43.73                                                      | 10.96                                                      | 26.77                                                      | 88.92                                                      | 124.49                                                     | 39.00                                                      |
| Madhya Pradesh                                             | 2043.84                                                    | 5873.87                                                    | 3781.83                                                    | 6194.79                                                    | 7780.48                                                    | 0.01                                                       |
| Maharashtra                                                | 2317.85                                                    | 3295.33                                                    | 6144.15                                                    | 6748.34                                                    | 1324.16                                                    | 4374.00                                                    |
| Manipur                                                    | 1.96                                                       | 0.67                                                       | 0.0007                                                     | 1.14                                                       | 0.0000                                                     | 1.48                                                       |
| Meghalaya                                                  | 0.03                                                       | 0.02                                                       | 0.22                                                       | 0.18                                                       | 0.07                                                       | 0.00                                                       |
| Odisha                                                     | 432.75                                                     | 1820.08                                                    | 1170.50                                                    | 1157.93                                                    | 571.41                                                     | 996.58                                                     |
| Puducherry                                                 | 7.55                                                       | 0.00                                                       | 0.45                                                       | 7.13                                                       | 0.55                                                       | 0.00                                                       |
| Rajasthan                                                  | 1917.40                                                    | 2242.59                                                    | 3439.43                                                    | 4993.05                                                    | 4306.85                                                    | 3382.28                                                    |
| Sikkim                                                     | 0.11                                                       | 0.04                                                       | 0.002                                                      | 0.000                                                      | 0.02                                                       | 0.50                                                       |
| Tamil Nadu                                                 | 3645.54                                                    | 2086.09                                                    | 2663.90                                                    | 1214.00                                                    | 2619.91                                                    | 494.67                                                     |
| Telangana                                                  | 166.97                                                     | 568.07                                                     | 570.52                                                     | 506.10                                                     | 0.00                                                       | 0.00                                                       |
| Tripura                                                    | 0.71                                                       | 1.00                                                       | 0.02                                                       | 0.81                                                       | 2.60                                                       | 0.00                                                       |
| Uttar Pradesh                                              | 574.57                                                     | 380.88                                                     | 469.17                                                     | 1084.56                                                    | 506.99                                                     | 954.34                                                     |
| Uttarakhand                                                | 27.47                                                      | 39.45                                                      | 72.38                                                      | 103.24                                                     | 134.86                                                     | 109.91                                                     |
| West Bengal                                                | 421.69                                                     | 261.11                                                     | 535.73                                                     |                                                            | NI                                                         |                                                            |
| Grand Total                                                | 16795.46                                                   | 22065.46                                                   | 28666.68                                                   | 27360.44                                                   | 20594.41                                                   | 14920.82                                                   |