Lok Sabha Question No. 485 (UNSTARRED), answered on 2024-02-06
Subject: Compensation under PMFBY
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Vinayak Bhaurao Raut, Sanjay Haribhau Jadhav

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

## LOK SABHA

## UNSTARRED QUESTION NO. 485

## TO BE ANSWERED ON THE 06 TH  FEBRUARY, 2024

## COMPENSATION UNDER PMFBY

485.   SHRI VINAYAK RAUT: SHRI SANJAY JADHAV:

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

- (a) the details and the total number of insurance companies included under the panel of Pradhan Mantri Fasal Bima Yojana (PMFBY) for the year 2022-23, particularly in Maharashtra;
- (b) the  total  amount  of  premium  collected  by  these  empanelled  insurance companies under the said scheme for the year 2022-23;
- (c) the total number of farmers who have received compensation under the said scheme in Maharashtra;
- (d) the total amount of compensation provided to various States during the last five years, particularly to Maharashtra for the year 2022-23;
- (e) the  total  number  of  cases  reported  regarding  delay  in  the  payment  or  nonpayment of compensation to the farmers in the year 2022-23 and during the last  five  years  along  with  the  names  and  numbers  of  such  insurance companies  which  have  delayed  or  have  failed  to  provide  the  compensation amount to farmers, particularly in Maharashtra; and
- (f) whether the  Government  has  fixed  any  base  compensation  level  under  the scheme so that all farmers get a guaranteed base amount as compensation to protect their interests and the steps taken by the Government in this regard and if not, the reasons therefor?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण मंũी (SHRI ARJUN MUNDA)

(a) : A total of 20 General Insurance Companies, both public and private,  have been empanelled by the Government of India for implementation of Pradhan Mantri Fasal Bima Yojana (PMFBY) in the country.  The implementing company is selected by the concerned State Government from these empanelled companies, through transparent  bidding  process.    List  of  20  empanelled  companies  is  at Annexure-I. During 2022-23,  Agriculture  Insurance  Company,  Bajaj-Allianz,  ICICI-Lombard, HDFC-ERGO,  Reliance,  United  India  insurance  companies  were  selected  for implementation of the scheme in the State by the State Government of Maharashtra.

(b)  to  (d)  :    For  the  year  2022-23  in  Maharashtra,  total  farmers  premium  of  Rs. 904.02 crore was collected and total claims of Rs.3842.66 crore were reported under the  scheme,  out  of  which  claims  of  Rs.  3500.23  crore  have  already  been  paid  to 62.75 lakh farmer applications by these companies as on 31.12.2023.   State-wise details of claims paid to the farmers during last 5 years i.e. 2018-19 to 2022-23 are given in Annexure-II .

(e) : All  the  major  work  like selection  of Insurance Companies through transparent bidding  process,  assessment  of  crop  yield/crop  loss  for  calculation  of  admissible claims are being performed by the concerned State Government or Joint Committee of  State  Government  officials  and  concerned  insurance  company.  The  roles  and responsibilities of each stakeholder are defined in the Operational Guidelines of the scheme for the proper execution of the scheme. However, during the implementation of  PMFBY,  some  complaints  against  insurance  companies  about  non-payment and/or  delayed  payment  of  claims;  under  payment  of  claims on  account  of incorrect/delayed submission of insurance proposals by banks; discrepancy in yield data & consequent disputes between State Government and insurance companies, delay  in  providing  State  Government  share  of  funds,  non-deployment  of  sufficient personnel by insurance companies etc.,  have been received in the past which have been suitably addressed as per provisions of the scheme.

Further, to better resolve all the grievances/complaints under the scheme,  a Unified  Krishi  Rakshak  Helpline  has  been  developed  recently  to  serve  as  the centralized grievance redressal platform.

(f) :  Being an insurance scheme, admissible claims are worked out and paid directly to the insured farmer's account by the insurance companies/Digiclaim module based on  the  yield  data,  per  unit  area,  furnished  to  the  insurance  company  by  the concerned State Government and claim calculation formula given below :

## (Actual Yield - Threshold Yield)       X  Sum Insured Threshold Yield

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  by  a  joint  committee comprising representatives of State Government and concerned insurance company. Therefore,  no  base  compensation  level/minimum  guaranteed  claims  are  provided under the scheme.

## ANNEXURE-I

## List of Insurance Companies empanelled for Crop Insurance Schemes

| PUBLIC SECTOR INSURANCE COMPANIES   | PUBLIC SECTOR INSURANCE COMPANIES                                                                                           |
|-------------------------------------|-----------------------------------------------------------------------------------------------------------------------------|
| 1.                                  | Agriculture Insurance Company of India Ltd.                                                                                 |
| 2.                                  | National Insurance Company Ltd.                                                                                             |
| 3.                                  | New India Assurance Company Ltd.                                                                                            |
| 4.                                  | Oriental Insurance Company Ltd.                                                                                             |
| 5.                                  | United India Insurance Company Ltd.                                                                                         |
| PRIVATE SECTOR INSRUANCE COMPANIES  | PRIVATE SECTOR INSRUANCE COMPANIES                                                                                          |
| 6.                                  | Bajaj Allianz General Insurance Company Ltd.                                                                                |
| 7.                                  | Cholamandalam MS General Insurance Company Ltd.                                                                             |
| 8.                                  | Future Generali India Insurance Company Ltd.                                                                                |
| 9.                                  | HDFC-ERGO General Insurance Company Ltd.                                                                                    |
| 10.                                 | ICICI-Lombard General Insurance Company Ltd. (Bharti AXA General Insurance Company Ltd. merged with ICICI-Lombard recently) |
| 11.                                 | IFFCO-Tokio General Insurance Company Ltd.                                                                                  |
| 12.                                 | Reliance General Insurance Company Ltd.                                                                                     |
| 13.                                 | SBI General Insurance Company Ltd.                                                                                          |
| 14.                                 | Shriram General Insurance Co. Ltd.                                                                                          |
| 15.                                 | Tata-AIG General Insurance Company Ltd.                                                                                     |
| 16.                                 | Universal Sompo General Insurance Company Ltd.                                                                              |
| 17.                                 | Royal Sundaram General Insurance company Ltd.                                                                               |
| 18.                                 | Go-Digit General Insurance company Ltd.                                                                                     |
| 19.                                 | Kshema General Insurance Ltd.                                                                                               |
| 20.                                 | Raheja QBE General Insurance Company Ltd.                                                                                   |

## Annexure-II

## State-wise details of claims paid during last 5 years i.e. 2018-19 to 2022-23 under PMFBY (As on 31.12.2023)

| State/UT Name    |   Paid Claims (Rs. in crore) |
|------------------|------------------------------|
| A&NIslands       |                         0.09 |
| Andhra Pradesh   |                      3701.92 |
| Assam            |                       537.7  |
| Chhattisgarh     |                      5216.65 |
| Goa              |                         0.11 |
| Gujarat          |                      3018.19 |
| Haryana          |                      6879.5  |
| Himachal Pradesh |                       258.6  |
| Jammu& Kashmir   |                        83.18 |
| Jharkhand        |                       801.87 |
| Karnataka        |                      8486.38 |
| Kerala           |                       426.11 |
| Madhya Pradesh   |                     21649.2  |
| Maharashtra      |                     22356.2  |
| Manipur          |                         4.08 |
| Meghalaya        |                         0.47 |
| Odisha           |                      4441.83 |
| Puducherry       |                        20.96 |
| Rajasthan        |                     21526    |
| Sikkim           |                         0.56 |
| Tamil Nadu       |                      8105.31 |
| Telangana        |                      1078.4  |
| Tripura          |                         6.06 |
| Uttar Pradesh    |                      3875.33 |
| Uttarakhand      |                       602.64 |
| West Bengal      |                       535.73 |
| GRAND TOTAL      |                    113613    |

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