Lok Sabha Question No. 3086 (UNSTARRED), answered on 2022-03-22
Subject: Insurance Companies Empanelled under Crop Insurance Scheme
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Sanjay(Kaka) Ramchandra Patil

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

## LOK SABHA UNSTARRED QUESTION NO. 3086

TO BE ANSWERED ON THE 22 ND  MARCH, 2022

## INSURANCE COMPANIES EMPANELLED UNDER CROP INSURANCE SCHEME

3086. SHRI SANJAY KAKA PATIL :

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

- (a) the details of the total number of insurance companies empanelled under the Crop Insurance Scheme for the year 2021-22, especially in the State of Maharashtra;
- (b) the details of the total amount of premium collected by the empanelled insurance companies under the Crop Insurance Scheme for the year 2021-22;
- (c)  the  details of  the total number of farmers provided compensation under the Crop Insurance Scheme as well as the total amount of compensation provided for the year 2021-22, especially in the State of Maharashtra;

(d) the details of the total number of incidences of delay/non-payment of compensation to farmers and the details of the defaulter insurance companies for the year 2021-22, especially in the State of Maharashtra; and

- (e)  whether  the  Government  has  fixed  a  base  compensation  level  under  the  Crop Insurance scheme so that all farmers get a guaranteed base amount as compensation to safeguard their interests and if not, the reason thereof?

## ANSWER

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

- (a) to (d): 19 general insurance companies have been empanelled for implementation of Pradhan Mantri  Fasal  Bima  Yojana  (PMFBY)  in  the  country.  However,  one  empanelled company merged with another empanelled insurance company in the year 2021.    State Government  of  Maharashtra  has  selected  six  companies  namely,  Agriculture  Insurance Company of India Ltd. (AIC), Bajaj-Allianz, HDFC-ERGO, Iffco-Tokio, Reliance and BhartiAXA  (now  merged  with  ICICI-Lombard)  through  bidding  process  for  three  years  from Kharif 2020 to Rabi 2022-23 season for implementation of the scheme in the State.

Details  of  premium  collected  from  farmers,  total  premium,  claims  paid  to  eligible farmers and number of farmer applications got claims during 2021-22 in the country and in Maharashtra are given in following table :

(Rs. in Crore)

| Particulars   | Farmer's premium   | Claims Paid (for Kharif 2021 season)   |   No. of farmer applications got claims (in lakh) (for Kharif 2021 season) |
|---------------|--------------------|----------------------------------------|----------------------------------------------------------------------------|
| Country       | 3,435.5            | 4,302.6                                |                                                                       74.5 |
| Maharashtra   | 637.8              | 2,612.1                                |                                                                       42.8 |

Cut-off  date  for  submission  of  yield  data  by  State  Government  to  insurance companies  for  calculation  of  claims  for  Rabi  2021-22  season  is  one  month  from  the conduct of Crop Cutting Experiments i.e. by the end of April.

The  admissible  claims  under  the  PMFBY  are  generally  paid  by  the  concerned insurance  companies  within  two  months  of  completion  of  Crop  Cutting  Experiments (CCEs)/harvesting  period  and  one  month  of  notification  for  invoking  the  risks/perils  of prevented sowing, mid-season adversity and post harvest losses subject to receipt of total share of premium subsidy from concerned Government within time.  However, settlement of  few  claims  in  some  States  including  Maharashtra  got  delayed  due  to  reasons  like delayed transmission of yield data; late release of their share in  premium subsidy, 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.

This  Department  is  regularly  monitoring  the  implementation  of  PMFBY  including timely settlement of claims through weekly video conference of stakeholders, one to one meetings with insurance companies/States etc.  Insurance companies have to pay penal interest @12% per annum to the farmers for the period beyond the stipulated period in the PMFBY Guidelines from the date of receipt of final yield data from the State Government and  completion  of  crop  damage  survey.    State  Governments  have  been  advised  to calculate the admissible interest, if any and direct the concerned insurance companies to pay to eligible farmers.

(e): The scheme is mainly implemented on 'Area Approach' basis.   Admissible claims are worked out and paid directly to the insured farmer's account by the insurance companies based  on  the  yield  data,  per  unit  area,  furnished  to  the  insurance  company  by  the concerned State Government and claim calculation formula envisaged in the Operational Guidelines  of  the  scheme  on  receipt  of  State  Government's  requisite  share  in  premium subsidy.   However, losses due to localized risks of hailstorm, landslide, inundation, cloud burst & natural fire and post-harvest losses due to cyclone, cyclonic/unseasonal rains & hailstorms are calculated on individual insured farm basis.     These claims are assessed by  a  joint  committee  comprising  representatives  of  State  Government  and  concerned insurance company.

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