Lok Sabha Question No. 2122 (UNSTARRED), answered on 2022-03-15
Subject: Insurance Companies under Crop Insurance Scheme
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Reddeppa Nallakonda Gari, Beesetti  Venkata Satyavathi

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

## LOK SABHA UNSTARRED QUESTION NO. 2122

TO BE ANSWERED ON THE 15 TH  MARCH, 2022

## INSURANCE COMPANIES UNDER CROP INSURANCE SCHEME

2122. SHRI N. REDDEPPA: DR. BEESETTI VENKATA SATYAVATHI:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ िष एवं कसान कयाण मंी be pleased to state: (a)  the  total  number  of  insurance  companies  empanelled  under  the  Crop  Insurance Scheme for the year 2021-22, especially in Andhra Pradesh; (b) the total amount of premium collected by the empanelled insurance companies under the Crop Insurance Scheme for the year 2021-22; (c) 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 Andhra Pradesh; (d) the total number of incidences of delay/nonpayment of compensation to farmers and the  details  of  the  defaulter  insurance  companies  for  the  year  2021-22,  especially  in Andhra Pradesh; 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 reasons therefor?

## 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.

Andhra Pradesh Government is not implementing the scheme since Rabi 201920.  As per data available as on 09.03.2022, a total amount of Rs.3,476 crore has been collected from farmers by the insurance companies as premium during 2021-22 under

PMFBY. Part claims of Rs. 4,303 crore have been paid to 74.5 lakh farmer applications for  Kharif  2021  season  only.      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  and  Karnataka  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.

(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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