Lok Sabha Question No. 201 (STARRED), answered on 2021-08-03
Subject: Timely Settlement under PMFBY
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Raksha Nikhil Khadse

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

## LOK  SABHA STARRED QUESTION NO. 201

TO BE ANSWERED ON THE  3 rd  AUGUST, 2021

## TIMELY SETTLEMENT UNDER PMFBY

- *201.    SHRIMATI RAKSHA NIKHIL KHADSE:

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

- (a) whether  the  insurance  claims  are  being  paid  to  the  farmers  on  time  after  crop damages/failure under the Pradhan Mantri Fasal Bima Yojana (PMFBY);
- (b) whether  in  many  States,  including  Rajasthan  and  Maharashtra,  the  payment  of insurance claims for crop failures in 2018-19, 2019-20 and 2020-21 is still pending;
- (c) whether the Government proposes to take steps for payment of all these outstanding claims;
- (d) if  so,  the  details  thereof  and  the  time  by  which  the  outstanding  claims  will  be  fully paid; and
- (e) if not, the reasons therefor?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी

(SHRI NARENDRA  SINGH TOMAR)

- (a) to (e): A statement is laid on the Table of the House.

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF  LOK  SABHA STARRED QUESTION NO.  201    DUE FOR REPLY ON 3 rd  AUGUST, 2021.

(a) to (e) : Yes Sir.    As  per  provisions  of  Pradhan  Mantri  Fasal  Bima  Yojana  (PMFBY), admissible  claims  are  generally  paid  by  the  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 claims in some States 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/non-remittance of farmers share of premium to concerned insurance company etc.

Details  of  pending  claims  for  the  last  three  years  i.e.  2018-9  to  2020-21  in  all implementing  States  alongwith  States  of  Maharashtra  and  Rajasthan  with  reasons  for pendency under the scheme are given in Annexure .

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

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.    Further,     penalty provisions   for late settlement of

-2- 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.

National Crop Insurance Portal (NCIP) - www.pmfby.gov.in has been developed with the objective to digitize the entire process/activities of the implementation of PMFBY and to ensure better administration,  co-ordination,  transparency,  dissemination  of  information  and delivery of services  including direct  online  enrollment  of  farmers,  uploading/obtaining individual insured farmer's details for better monitoring and to ensure direct transfer of claim amount electronically to the individual farmers Bank Accounts.    To ensure timely payment of claims, use of smartphone/CCE-Agri App for real time transfer of yield data on NCIP by the States has also been initiated.   Through NCIP and Crop Insurance App, farmers can track their crop insurance application and get all information about it.

To resolve the technical disputes between insurance companies and other stakeholders  including  States,  Technical  Advisory  Committee  (TAC)  at  Centre  level  and State  Technical  Advisory  Committees  (STAC)  at  State  level  have  also  been  constituted under the scheme to facilitate early settlement of claims.

## Annexure

| Status of Pendency of Claims under PMFBY in Maharashtra and Rajasthan as on 26.07.2021   | Status of Pendency of Claims under PMFBY in Maharashtra and Rajasthan as on 26.07.2021   | Status of Pendency of Claims under PMFBY in Maharashtra and Rajasthan as on 26.07.2021   | Status of Pendency of Claims under PMFBY in Maharashtra and Rajasthan as on 26.07.2021   | Status of Pendency of Claims under PMFBY in Maharashtra and Rajasthan as on 26.07.2021   | Status of Pendency of Claims under PMFBY in Maharashtra and Rajasthan as on 26.07.2021                |
|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|
|                                                                                          |                                                                                          |                                                                                          |                                                                                          | Claims Outstanding as per                                                                | (RS. IN CRORE)                                                                                        |
| Implementing                                                                             | 2018-19                                                                                  | 29,289.57                                                                                | 28,100.16                                                                                | Claims 1,189.41                                                                          | Majority claims pending due to pending State Subsidy; pending                                         |
| Implementing                                                                             | 2019-20                                                                                  | 26,484.76                                                                                | 25,394.48                                                                                | 1,090.28                                                                                 | yield data and other reasons such as payment failure in transfer of claims to bank account of farmers |
| Implementing                                                                             | 2020-21*                                                                                 | 6,507.74                                                                                 | 5,437.69                                                                                 | 1,070.05                                                                                 | Majority claims under process; some claims pending due to State subsidy and yield data                |
|                                                                                          | 2018-19                                                                                  | 6,069.31                                                                                 | 6,062.98                                                                                 | 6.32                                                                                     | NEFT related issues                                                                                   |
|                                                                                          | 2019-20                                                                                  | 6,732.48                                                                                 | 6,723.35                                                                                 | 9.13                                                                                     | NEFT related issues                                                                                   |
|                                                                                          | 2020-21                                                                                  | 953.58                                                                                   | 750.12                                                                                   | 203.46                                                                                   | State Subsidy Pending; Yield Data pending for Rabi 2020-21                                            |
|                                                                                          | 2018-19                                                                                  | 3,428.86                                                                                 | 3,465.86                                                                                 | 2.78                                                                                     | Yield Data Clarification                                                                              |
|                                                                                          | 2019-20                                                                                  | 4,854.79                                                                                 | 4,947.98                                                                                 | Nil                                                                                      |                                                                                                       |
|                                                                                          | 2020-21                                                                                  | 2,457.82                                                                                 | 2,402.11                                                                                 | 55.70                                                                                    | NEFT related issues                                                                                   |

*  Complete/Partial  Yield  data  for  2020-21,  especially  Rabi  2020-21  pending  for  few  major States such as Assam, Haryana, Karnataka, Madhya Pradesh, Maharashtra, and Odisha.

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