Lok Sabha Question No. 3680 (UNSTARRED), answered on 2021-08-10
Subject: Low Settlement of Insurance Claims
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Nama Nageswara Rao

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

## LOK SABHA UNSTARRED QUESTION NO. 3680

TO BE ANSWERED ON THE 10 TH  AUGUST, 2021

## LOW SETTLEMENT OF INSURANCE CLAIMS

3680. SHRI NAMA NAGESWARA RAO:

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

(a) whether the settlement of agriculture insurance claims is very less in some States, if so, the reasons therefor; (b) if not, the details of insurance payouts and financial assistance made to farmers for crop loss from 2017 to 2020, State-wise; (c) whether the use of drones (Remotely Piloted Aircraft System) for quick and accurate assessment of crop yield/loss has led to  speedy claim settlement under the Pradhan Mantri Fasal Bima Yojana (PMFBY), if so, the details thereof; and

- (d) if not, the reasons therefor?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE

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

(a) to  (d)  :    Pradhan  Mantri Fasal Bima Yojana (PMFBY) provides comprehensive risk insurance  against  non-preventable  natural  calamities  from  pre-sowing  to  post-harvest crop losses.   Under PMFBY, coverage and settlement of claims is made on the basis of shortfall in Actual Yield as compared to the Threshold yield.  Actual Yield is arrived at on the basis of yield data based on requisite number of Crop Cutting Experiments (CCEs) in a  defined  Insurance  Units  (IUs)  and  submitted  by  the  concerned  State  Government. Threshold Yield for a crop in a notified insurance unit is the average yield of best 5 years out of past seven years multiplied by applicable indemnity level for that crop.   Farmers are  indemnified to  the  extent/percentage  of  crop  losses  against the  defined Threshold Yield multiplied by sum insured as notified by the State Government.    Therefore, claims experience of each implementing State/UT is dependent on the shortfall in the yield due to natural calamities which occur in the notified unit area and may differ from State to State and even from one insurance unit area to another insurance unit area.

State-wise  details of  insurance payouts/claims  paid  and the farmer  applications benefitted  i.e.  to  whom  claims  paid  from  2017-18  to  2019-20  under  the  scheme  are Annexed.

Operational Guidelines (OGs) for PMFBY envisage use of technology to ensure timely settlement of farmers claims.  Therefore, different pilot studies with different approaches like  use  of  Remote  Sensing  Technology  (RST)  including  satellite  data,  drones  based images  etc.,  especially  for  Crop  Cutting  Experiment  (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) for leverage of technology for implementation of PMFBY. The  suitable  technology  based  on  the  accuracy/standardization  of  results  obtained through these pilot studies may be adopted at national level.

Annexure

| State Wise Claims settled under PMFBY from 2017-18 to 2019-20 (as on 28.07.2021)   | State Wise Claims settled under PMFBY from 2017-18 to 2019-20 (as on 28.07.2021)   | State Wise Claims settled under PMFBY from 2017-18 to 2019-20 (as on 28.07.2021)   | State Wise Claims settled under PMFBY from 2017-18 to 2019-20 (as on 28.07.2021)   | State Wise Claims settled under PMFBY from 2017-18 to 2019-20 (as on 28.07.2021)   | State Wise Claims settled under PMFBY from 2017-18 to 2019-20 (as on 28.07.2021)   | State Wise Claims settled under PMFBY from 2017-18 to 2019-20 (as on 28.07.2021)   |
|------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|
| State/UT Name                                                                      | 2017-18                                                                            | 2017-18                                                                            | 2018-19                                                                            | 2018-19                                                                            | 2019-20                                                                            | 2019-20                                                                            |
| State/UT Name                                                                      | Paid Claims (Rs. crore)                                                            | Farmer Applica- tions Benefitted (Lakh)                                            | Paid Claims                                                                        | Farmer Appli- cations Benefitted (Lakh)                                            | Paid Claims                                                                        | Farmer Appli- cations Benefitted (Lakh)                                            |
| A & N Islands                                                                      | -                                                                                  | -                                                                                  | -                                                                                  | -                                                                                  | -                                                                                  | -                                                                                  |
| Andhra Pradesh                                                                     | 740.18                                                                             | 7.15                                                                               | 1,885.06                                                                           | 16.17                                                                              | 926.65                                                                             | 14.75                                                                              |
| Assam                                                                              | 1.18                                                                               | 0.02                                                                               | 2.79                                                                               | 0.08                                                                               | -                                                                                  | -                                                                                  |
| Bihar                                                                              | 401.52                                                                             | 2.18                                                                               |                                                                                    | Not Implemented                                                                    | Not Implemented                                                                    |                                                                                    |
| Chhattisgarh                                                                       | 1,391.31                                                                           | 6.59                                                                               | 1,087.30                                                                           | 6.56                                                                               | 1,286.25                                                                           | 14.83                                                                              |
| Goa                                                                                | 0.01                                                                               | 0.0002                                                                             | 0.10                                                                               | 0.0003                                                                             | 0.01                                                                               | 0.001                                                                              |
| Gujarat                                                                            | 1,075.83                                                                           | 3.90                                                                               | 2,777.89                                                                           | 13.92                                                                              | 111.67                                                                             | 0.93                                                                               |
| Haryana                                                                            | 895.98                                                                             | 3.25                                                                               | 939.95                                                                             | 4.19                                                                               | 923.30                                                                             | 5.52                                                                               |
| Himachal Pradesh                                                                   | 64.71                                                                              | 1.47                                                                               | 55.00                                                                              | 1.27                                                                               | 58.01                                                                              | 1.50                                                                               |
| Jammu & Kashmir                                                                    | 9.84                                                                               | 0.19                                                                               | 26.24                                                                              | 0.20                                                                               | Not Implemented                                                                    | Not Implemented                                                                    |
| Jharkhand                                                                          | 47.21                                                                              | 1.39                                                                               | 21.11                                                                              | 0.58                                                                               | Not Implemented                                                                    | Not Implemented                                                                    |
| Karnataka                                                                          | 856.84                                                                             | 6.19                                                                               | 2,925.59                                                                           | 13.74                                                                              | 1,167.76                                                                           | 6.21                                                                               |
| Kerala                                                                             | 10.96                                                                              | 0.38                                                                               | 26.74                                                                              | 0.40                                                                               | 53.40                                                                              | 0.27                                                                               |
| Madhya Pradesh                                                                     | 5,894.85                                                                           | 24.81                                                                              | 3,776.75                                                                           | 22.63                                                                              | 5,811.74                                                                           | 30.56                                                                              |
| Maharashtra                                                                        | 3,292.50                                                                           | 53.82                                                                              | 6,062.98                                                                           | 80.55                                                                              | 6,723.35                                                                           | 87.58                                                                              |
| Manipur                                                                            | 0.67                                                                               | 0.04                                                                               | 0.001                                                                              | 0.00002                                                                            | 1.14                                                                               | 0.03                                                                               |
| Meghalaya                                                                          | 0.02                                                                               | 0.0001                                                                             | 0.22                                                                               | 0.004                                                                              | 0.18                                                                               | 0.01                                                                               |
| Odisha                                                                             | 1,818.55                                                                           | 7.53                                                                               | 1,169.97                                                                           | 6.58                                                                               | 1,129.60                                                                           | 11.99                                                                              |
| Puducherry                                                                         | Not Implemented                                                                    | Not Implemented                                                                    | 0.45                                                                               | 0.005                                                                              | -                                                                                  | -                                                                                  |
| Rajasthan                                                                          | 2,232.00                                                                           | 25.30                                                                              | 3,465.86                                                                           | 20.63                                                                              | 4,947.98                                                                           | 25.85                                                                              |
| Sikkim                                                                             | 0.04                                                                               | 0.001                                                                              | 0.002                                                                              | 0.00003                                                                            | Not Implemented                                                                    | Not Implemented                                                                    |
| Tamil Nadu                                                                         | 2,057.27                                                                           | 10.11                                                                              | 2,656.31                                                                           | 18.94                                                                              | 1,056.84                                                                           | 13.22                                                                              |
| Telangana                                                                          | 648.50                                                                             | 4.40                                                                               | 148.90                                                                             | 0.59                                                                               | Not Implemented                                                                    | Not Implemented                                                                    |
| Tripura                                                                            | 1.00                                                                               | 0.03                                                                               | 0.02                                                                               | 0.002                                                                              | 0.78                                                                               | 0.08                                                                               |
| Uttar Pradesh                                                                      | 380.87                                                                             | 5.85                                                                               | 469.16                                                                             | 6.26                                                                               | 1,092.66                                                                           | 9.34                                                                               |
| Uttarakhand                                                                        | 39.45                                                                              | 0.70                                                                               | 72.38                                                                              | 0.85                                                                               | 103.17                                                                             | 0.95                                                                               |
| West Bengal                                                                        | 261.11                                                                             | 5.51                                                                               | 529.39                                                                             | 7.09                                                                               | Not Implemented                                                                    | Not Implemented                                                                    |
| GRAND TOTAL                                                                        | 22,122.37                                                                          | 170.81                                                                             | 28,100.16                                                                          | 221.25                                                                             | 25,394.48                                                                          | 223.61                                                                             |

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