Lok Sabha Question No. 2485 (UNSTARRED), answered on 2024-08-06
Subject: Revival of Fasal Bima Yojana
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Vishnu Dayal Ram

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

## LOK SABHA UNSTARRED QUESTION NO. 2485

TO BE ANSWERED ON THE 06 TH    August, 2024

## REVIVAL OF FASAL BIMA YOJANA

2485.  SHRI VISHNU DAYAL RAM:

Will the Minister of AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण मंũी be pleased to state:

(a)  whether  the  Government  proposes  to  revive  Fasal  Bima  Yojana  with  the  aim  of providing benefits to the farmers;

(b) if so, the details thereof;

(c) the details of the precautionary measures taken by the Government to make the said scheme more safe and beneficial for the farmers against the burden of installments and crop loss;

(d) whether there is inordinate delay in settling the claims of the farmers; and

(e) if so, the corrective measures taken by the Government for early settlement of their claims and protecting them from loss?

## ANSWER

MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण राǛ मंũी (SHRI RAMNATH THAKUR)

(a)  &  (b):    The  Pradhan  Mantri  Fasal  Bima  Yojana  (PMFBY)  is  being  implemented successfully  across  the  country  since  2016.    The  Government  has  made  several interventions for ensuring better transparency, accountability, timely payment of claims to the farmers and to make the scheme more farmer friendly, as a result of which the area and farmers covered under the scheme in 2023-24 is at all-time high.  The scheme is now the largest in the world in terms of farmer applications insured.

(c ):   As per provisions of PMFBY guidelines, the premium share of the farmer is capped at 2% for Kharif crops, 1.5% for Rabi Crops and 5% for commercial/Horticultural crops. Some States have further waived off farmer's share of premium due to which there is very less burden on the farmers.

(d) & (e):   As against the total reported claims of Rs.1,67,475 crore under the scheme, Rs.1,63,519 crore (98%) have already been paid.  Settlement of few claims in some States got slightly delayed due to reasons like late release of State share in premium subsidy by the States delayed transmission of yield data, 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.

It has been observed that majority of pending claims remain unpaid on account of delay by States in releasing their share of premium subsidy.  Taking cognizance of  this, Government of India is releasing its share of premium subsidy in advance by delinking the same from release of State Government's share.  Accordingly, claims are released by the Insurance Companies on pro-rata basis, so that the farmer does not suffer.  Further, as per provisions of revamped Operational Guidelines of the scheme,  insurance companies are required to pay penal interest @12% per annum to the farmers for the period beyond the period stipulated in the PMFBY Guidelines from the date of receipt of final yield data from the State Government and completion of crop damage survey.

Department has been regularly monitoring the functioning of insurance companies, including timely settlement of claims through weekly video conferencing of all stakeholders, one to one meeting as well as National Review Conferences.  In order to rigorously monitor claim  disbursal  process,  a  dedicated  module  namely 'Digiclaim  Module' has  been operationalized for payment of claims from Kharif 2022 onwards.  It involves integration of National Crop Insurance Portal (NCIP) with PFMS and accounting system of Insurance Companies to provide timely & transparent processing of all claims.

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