Lok Sabha Question No. 4349 (UNSTARRED), answered on 2022-03-29
Subject: Calculation of Crop Insurance
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Ajay Nishad

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

## LOK SABHA UNSTARRED QUESTION NO. 4349

TO BE ANSWERED ON THE 29 TH  MARCH, 2022

## CALCULATION OF CROP INSURANCE

4349. SHRI AJAY NISHAD:

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

(a)  whether  crop  insurance  claims  are  calculated  on  the  basis  of  crop  harvesting assessments;

(b) if so, the details thereof;

(c) whether the Government always faces problems in getting correct data on time for the quick settlement of insurance claims made by the farmers;

(d) if so, the details thereof;

(e)  whether  the  Government  plans  to  use  drone,  satellite  imagery  and  Geo-spatial technology to reduce the delay in the settlement of insurance claims for crops damaged; and

(f) if so, the details along with features thereof?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी

(SHRI NARENDRA SINGH TOMAR)

(a)  to  (f):      The  Pradhan  Mantri  Fasal  Bima  Yojana  (PMFBY)  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, based on requisite number of  Crop Cutting Experiments (CCEs), per unit area,  furnished to the concerned insurance  company  by  the  concerned  State  Government  and  claim  calculation  formula envisaged  in  the  Operational  Guidelines  of  the  scheme  subject  to  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.

The  CCEs  are  being  conducted  in  a  very  short  harvesting  window  and  are  labor intensive in most of the States and there is sometimes delay in submission of yield data by some  States/UTs  to  insurance  companies  for  few  notified  insurance  unit  areas  which results  in  delay  in  settlement  of  admissible  claims  of  farmers.    Keeping  this  in  view Operational Guidelines (OGs) for PMFBY envisage real time transfer of data through CCE Agri App with time and date stamp and use of technology to ensure timely settlement of farmers  claims.    Further,  different  pilot  studies  with  different  approaches  like  use  of Remote  Sensing  Technology  (RST)  including  satellite  data,  drones  based  images  etc., especially for CCE planning, direct yield estimation at Gram Panchayat level, risk mapping of  districts  and  for  dispute/area  discrepancy  resolution  etc.  have  been  initiated  through Mahalanobis  National  Crop  Forecasting  Centre  (MNCFC)  to  leverage  technology  for implementation of PMFBY.

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