Lok Sabha Question No. 2460 (UNSTARRED), answered on 2021-08-03
Subject: Non-payment of PMFBY Claims
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Prataprao Govindrao  Patil Chikhalikar

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

## LOK SABHA UNSTARRED QUESTION NO. 2460

TO BE ANSWERED ON THE 3 RD  AUGUST, 2021

## NON-PAYMENT OF PMFBY CLAIMS

2460. SHRI PRATAPRAO PATIL CHIKHLIKAR:

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

- (a) whether the Government is aware that the claim amount has not been paid to the farmers in Maharashtra including Marathwada and particularly Nanded district even after the payment of premium under Pradhan Mantri Fasal Bima Yojana (PMFBY);
- (b)  the  reasons  for  the  delay  in  the  payment  of  insurance  amount  to  the farmers;
- (c)  whether  the  Government  has  given  any  directions  to  the  insurance companies in this regard;
- (d) whether the Government is aware that the farmers are committing suicide because of this; and
- (e) if so, the steps taken for the payment of crop insurance claim made so far including Kharif 2020?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

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

- (a)  to  (e)  :    This  Department  is  regularly  monitoring  the  implementation  of Pradhan  Mantri  Fasal  Bima  Yojana  (PMFBY)  including  timely  settlement  of claims through weekly video conference of stakeholders; one to one meetings with insurance companies/States etc. However,  settlement of claims in sometimes 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,  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/nonremittance of farmers share of premium to concerned insurance company etc.

Most of the claims due to localized calamities and mid-season adversity have already  been  settled  in  Maharashtra  for  Kharif  2020.    However,  post  harvest claims and yield base claims are under process.   Details of reported claims and  paid  claims  in  Nanded  and  Marathwada  region  under  PMFBY  for  the season  are given below :

| District/Region                | Admissible Claims   | Paid Claims    |
|--------------------------------|---------------------|----------------|
|                                | (Rs. in Crore)      | (Rs. in Crore) |
| Nanded                         | 97.51               | 92.77          |
| Marathwada Region (8 Districts | 537.61              | 436.03         |

Non receipt of State share of premium subsidy is one of the major reason for delayed  settlement  of  claims.  However,  some  of  the  companies  also  raised issues regarding non-receipt of/ sub-standard yield data.

Further, 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 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 are also reminded from time to time regarding payment of State's pending share in the premium subsidy and timely submission of yield data  etc.  to  facilitate  the  settlement  of  pending/delayed  claims  to  eligible farmers.

Department of Agriculture and Farmers Welfare has not received any intimation  regarding  suicide  by  farmers  due  to  delayed  settlement  of  claims under PMFBY.

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